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Governance Reform in Legal Service Markets

Author

Listed:
  • Paul A. Grout
  • Ian Jewitt
  • Silvia Sonderegger

Abstract

This article discusses proposed governance reforms of legal services markets. The model distinguishes between a status quo position supported by a system of professionally enforced collective reputation and forms of governance based more squarely on market mechanisms. We identify a number of forces which determine the success of reform. Focusing particularly on the "rent recapture" and "relationship substitution" effects, we highlight their impact on client welfare and quality of legal services in different types of market according to whether clients are transient or repeated users of the service. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Suggested Citation

  • Paul A. Grout & Ian Jewitt & Silvia Sonderegger, 2007. "Governance Reform in Legal Service Markets," Economic Journal, Royal Economic Society, vol. 117(519), pages 93-113, March.
    • Handle: RePEc:ecj:econjl:v:117:y:2007:i:519:p:c93-c113
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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