An Exploratory Study of the Pricing of Legal Services

Abstract

Consumers and firms spend some $200 billion annually on legal services, but little is known about thefactors that influence lawyers’ prices for those services. In this paper, we explore the determinants of thevariation in lawyers’ pricing to shed light on competition among lawyers and to comment on whetherentry barriers to legal practice that restrict competition are justified because they protect consumerswho may have imperfect information about potential legal service providers. We do not find evidence insupport of this premise.

Publication
International Review of Law and Economics(38)
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Vikram Maheshri
Associate Professor of Economics

I am an applied microeconomist at the University of Houston. I study social interactions, especially in urban settings.