Many law firms consist of partners who share profits. On being made a partner, a lawyer must

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Many law firms consist of partners who share profits. On being made a partner, a lawyer must post a bond, a large payment to the firm that will be forfeited on bad behavior. How would such an arrangement reduce moral hazard problems?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

Question Posted: Nov 13, 2014 03:40 AM

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Many law firms consist of partners who share profits. On being made a partner, a lawyer must

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The bond is posted because law firms exist and thrive primarily based on their rep...View the full answer

Managerial Economics and Strategy

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