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http://en.wikipedia.org/wiki/Free_market#Overview http://en.wikipedia.org/wiki/Free_market#Overview Adam Smith believed that an economy should be free of monop

by jerrya 15y ago

http://en.wikipedia.org/wiki/Free_market#Overview http://en.wikipedia.org/wiki/Free_market#Overview Adam Smith believed that an economy should be free of monopoly rents If I can keep you from switching lawyers, if I can keep you from interviewing other lawyers, if I know your choice is not "lawyer or no lawyer", but "which lawyer", then I can keep my prices artificially (not a free market) high.

Symmetry 15y ago
Erm, how is that different than food? You can't choose not to buy food, so would you also consider that not to be a free market?
- ktizo 15y ago
  You can grow it or hunt it. [edit] Not that I think that the global market for food to be a free market.
baddox 15y ago
How do you distinguish between "keeping you from switching" and "it being inherently difficult to switch?" If you buy an expensive car that only runs on expensive and rare fuel (thereby restricting your choice in fuels), is the free market somehow violated? If you buy a Gillette razor that only works with Gillette blade cartridges, is the free market violated? I find the distinction rather fuzzy.
- antonej 15y ago
  Good point. Lawyers and firms have few (if any) tools at their disposal to keep a client from switching firms. The inherent switching cost is fairly high for some matters, but firms that are sophisticated know how to compensate on the front end in a way that makes it easier for a potential client to switch to them.
antonej 15y ago
There's no way to keep a client from interviewing other lawyers. Moreover, state bar ethical rules entitle the client to fire the lawyer at any time for any reason or no reason. The opposite isn't true; there are strings attached to when a lawyer is permitted to withdraw from the representation. What this means is that theoretically a large, valuable client can negotiate a multi-year cap on rates or rate increases, etc., which then operates as a multi-year option contract. The client can always choose to switch firms anyway, but also has the value of knowing in advance that the rates at its current firm will go no higher than X in year two or Y in year three.

by jerrya 15y ago

Symmetry 15y ago

Erm, how is that different than food? You can't choose not to buy food, so would you also consider that not to be a free market?

ktizo 15y ago
You can grow it or hunt it. [edit] Not that I think that the global market for food to be a free market.

baddox 15y ago

How do you distinguish between "keeping you from switching" and "it being inherently difficult to switch?" If you buy an expensive car that only runs on expensive and rare fuel (thereby restricting your choice in fuels), is the free market somehow violated? If you buy a Gillette razor that only works with Gillette blade cartridges, is the free market violated? I find the distinction rather fuzzy.

antonej 15y ago
Good point. Lawyers and firms have few (if any) tools at their disposal to keep a client from switching firms. The inherent switching cost is fairly high for some matters, but firms that are sophisticated know how to compensate on the front end in a way that makes it easier for a potential client to switch to them.

antonej 15y ago

There's no way to keep a client from interviewing other lawyers. Moreover, state bar ethical rules entitle the client to fire the lawyer at any time for any reason or no reason. The opposite isn't true; there are strings attached to when a lawyer is permitted to withdraw from the representation. What this means is that theoretically a large, valuable client can negotiate a multi-year cap on rates or rate increases, etc., which then operates as a multi-year option contract. The client can always choose to switch firms anyway, but also has the value of knowing in advance that the rates at its current firm will go no higher than X in year two or Y in year three.