Explore BrainMass
Share

Contingency Fee for a Lawyer

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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"?

Given info - attached.

© BrainMass Inc. brainmass.com October 16, 2018, 6:14 pm ad1c9bdddf
https://brainmass.com/economics/microeconomics/contingency-fee-lawyer-79251

Attachments

Solution Preview

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
Similar Posting

Attorney Contingency Fees

As an attorney, contingency fees are very near and dear to their heart. However, there are many arguments against contingency fees that are just as valid as those in favor.

What do you think would be on of the things that is argued for, and against, contingency fees in general?

What are your own opinions with regard to contingency fees?

View Full Posting Details