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Contingency Fee for a Lawyer

Question: What contingency fee (percent of winnings) is the minimum amount that would induce the plaintiff's lawyer to choose "above average effort" over "average effort"?

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Question: What contingency fee (percent of winnings) is the minimum amount that would induce the plaintiff's lawyer to choose "above average effort" over "average effort"?

The percent of the winnings would be such that it should at least cover the opportunity cost of the plaintiff's lawyer.
For the two categories mentioned the opportunity costs are Above Average 150 hours X $100= $15,000 and for Average 120 hours X $100 = $12,000.

Now we need to find out the expected earnings for the two ...

Solution Summary

This job finds the expected earnings for the two categories. The minimum amount that would induce the plaintiff's lawyer to choose "above average effort" over "average effort" is determined.

$2.19