FREE RIDING, SHIRKING, AND TEAM PRODUCTION IN LEGAL PARTNERSHIPS

Arleen A. Leibowitz · Robert D. Tollison

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Law, Economics, and Judicial Systems Merger and Competition Analysis Economic Theory and Institutions

Abstract

A model of team production in legal partnerships, based on the Alchian-Demsetz theory of the firm, is developed and tested empirically in this paper. An estimate of the optimal law-firm size for controlling costly free riding behavior in partnerships is derived. Finally, some survivorship evidence on law-firm sizes, some comparisons of legal and medical group practices, and some thoughts on the role of the sole proprietor in the market for legal services are presented.

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1996Production, Information Costs and Economic Organization 1958An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money 1974A Theory of Social Interactions 1974A Theory of Social Interactions 1946Income from Independent Professional Practice 1971Empirical Studies in Health Economics 1957Trends in Employment in the Service Industries 1973The Economics of Group Practice

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