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FREE RIDING, SHIRKING, AND TEAM PRODUCTION IN LEGAL PARTNERSHIPS

by: Arleen Leibowitz, Robert Tollison
Economic Inquiry, Vol. 18, No. 3. (1 July 1980), pp. 380-394, doi:10.1111/j.1465-7295.1980.tb00585.x  Key: citeulike:12098894

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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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