{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/70794"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/70794","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Optimal Contracts for Legal Services","abstract":"This dissertation characterizes optimal contracts for legal services in the presence of asymmetric information. The lawyer-client relationship examined is an application of the general principal-agent problem. The agent (lawyer) takes an action that, together with the realization of a random variable (merit), determines the outcome of the case (settlement value). The merit of the case refers to the actual facts present in the client's case and how they relate to the relevant case law. A conflict of interest arises because the action is a productive input that involves disutility to the lawyer.","abstract_html":"This dissertation characterizes optimal contracts for legal services in the presence of asymmetric information. The lawyer-client relationship examined is an application of the general principal-agent problem. The agent (lawyer) takes an action that, together with the realization of a random variable (merit), determines the outcome of the case (settlement value). The merit of the case refers to the actual facts present in the client's case and how they relate to the relevant case law. A conflict of interest arises because the action is a productive input that involves disutility to the lawyer.","abstract_has_math":false,"creators":["Woj, Carolyn Anne"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Economics","degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2014,"date_issued":"2014-12-16T04:05:24Z","date_published":"2014-12-16T04:05:24Z","updated_at":"2026-07-22T22:26:03Z","subjects":["Economics, General"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["(UMI)AAI8803238"],"render_values":[{"text":"(UMI)AAI8803238","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/70794","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Woj, Carolyn Anne"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2014-12-16T04:05:24Z","10000-01-01","1987"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Economics, General"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/70794","(UMI)AAI8803238"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["This dissertation characterizes optimal contracts for legal services in the presence of asymmetric information. The lawyer-client relationship examined is an application of the general principal-agent problem. The agent (lawyer) takes an action that, together with the realization of a random variable (merit), determines the outcome of the case (settlement value). The merit of the case refers to the actual facts present in the client's case and how they relate to the relevant case law. A conflict of interest arises because the action is a productive input that involves disutility to the lawyer.","The lawyer-client relationship examined is different than the usual principal-agent problem because I assume that the lawyer observes the actual value of the random variable prior to choosing his action. The problem is thus one of self-selection; the principal must provide the agent with an incentive to reveal private information. The purpose of the optimal fee contract in this situation is to provide the lawyer with an incentive to (1) work in the client's best interest, and (2) reveal the actual merit of the case.","In determining the properties of the optimal contract, the timing of the information asymmetry and any ex post limitations on the liability of the lawyer are important factors. Optimal contracts in the presence of asymmetric information are either efficient or inefficient, depending on the type of asymmetric information present. If efficient contracts can induce self-selection while keeping the individual rationality constraint binding, efficient contracts are optimal. Otherwise, it is optimal for the principal to design contracts which induce inefficient outcomes, so that the payment necessary to induce self-selection can be reduced. Of special interest is the fact that the common fee forms (flat fee, hourly wage, and contingent fee) are not efficient or optimal, regardless of the informational structure present.","Made available in DSpace on 2014-12-16T04:05:24Z (GMT). No. of bitstreams: 1 8803238.pdf: 3042254 bytes, checksum: 0bbaf528f60b3b67323ab52cb6409522 (MD5) Previous issue date: 1987","Embargo set by: Seth Robbins for item 70960 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","U of I Only","85 p.","Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987."]},{"key":"dc:title","label":"Title","values":["Optimal Contracts for Legal Services"]}]}],"canonical_facts":{"dc:creator":["Woj, Carolyn Anne"],"dc:date":["2014-12-16T04:05:24Z","10000-01-01","1987"],"dc:description":["This dissertation characterizes optimal contracts for legal services in the presence of asymmetric information. The lawyer-client relationship examined is an application of the general principal-agent problem. The agent (lawyer) takes an action that, together with the realization of a random variable (merit), determines the outcome of the case (settlement value). The merit of the case refers to the actual facts present in the client's case and how they relate to the relevant case law. A conflict of interest arises because the action is a productive input that involves disutility to the lawyer.","The lawyer-client relationship examined is different than the usual principal-agent problem because I assume that the lawyer observes the actual value of the random variable prior to choosing his action. The problem is thus one of self-selection; the principal must provide the agent with an incentive to reveal private information. The purpose of the optimal fee contract in this situation is to provide the lawyer with an incentive to (1) work in the client's best interest, and (2) reveal the actual merit of the case.","In determining the properties of the optimal contract, the timing of the information asymmetry and any ex post limitations on the liability of the lawyer are important factors. Optimal contracts in the presence of asymmetric information are either efficient or inefficient, depending on the type of asymmetric information present. If efficient contracts can induce self-selection while keeping the individual rationality constraint binding, efficient contracts are optimal. Otherwise, it is optimal for the principal to design contracts which induce inefficient outcomes, so that the payment necessary to induce self-selection can be reduced. Of special interest is the fact that the common fee forms (flat fee, hourly wage, and contingent fee) are not efficient or optimal, regardless of the informational structure present.","Made available in DSpace on 2014-12-16T04:05:24Z (GMT). No. of bitstreams: 1 8803238.pdf: 3042254 bytes, checksum: 0bbaf528f60b3b67323ab52cb6409522 (MD5) Previous issue date: 1987","Embargo set by: Seth Robbins for item 70960 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","U of I Only","85 p.","Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987."],"dc:identifier":["http://hdl.handle.net/2142/70794","(UMI)AAI8803238"],"dc:subject":["Economics, General"],"dc:title":["Optimal Contracts for Legal Services"],"dc:type":["text"],"thesis:degree_discipline":["Economics"],"thesis:degree_level":["Dissertation"],"thesis:degree_name":["Ph.D."],"thesis:institution_name":["University of Illinois at Urbana-Champaign"]},"updated_at":"2026-07-22T22:26:03Z"}