Reading materials for January 20, 2011

Please ensure that you read the materials in advance of  the day. The aim is to familiarize yourself with the main concepts. We will draw upon the reading materials, other academic and practical works, and the experience and views of the panelists, audience and lecturers to discuss and debate the topics during Leganomics. 


9.30 Strategies for managing suppliers of professional services

Main reading

Purchasing strategies in the Kraljic matrix - A power and dependence perspective by Marjolein C.J. Caniels and Cees J. Gelderman (2005) here

Strategies for managing suppliers of professional services by Wayne E. Baker and Robert R. Faulkner (1991) here

Further reading

Why clients need, rather than want, lawyers by Toni Hilton and Stephen Migdal (2005) here
Client loyalty and defection in the corporate legal industry by Dayananda Palihawadana and Bradley R. Barnes (2004) here

Customers' motivations for maintaining relationships with service providers by Neeli Bendapudi and Leonard L. Berry (1997) here

10.40 Is the UK legal market an oligopoly?

Main reading

Presentation (available on the day) by Professor Jean-Pierre Benoit

Further reading

Why price competition between investment banks is so feeble, The Economist (June 2010) here

Which law firms are at the top of GCs' speed-dial list? by Tamara Loomis (2006) here

Institutionalization and interorganizational cognition: two perspectives on the development and persistence of the "magic circle" of United Kingdom law firms by Samantha Fairclough (2005) here

Reputation and performance in large law firms by Michael Smets (2008) here  

The market provision of management services, information asymmetries and service quality - some market solutions: an empirical example by Timothy Clark (2001) here


11.50 Economics of information production

Main reading
Versioning: the smart way to sell information by Carl Shapiro and Hal Varian (1998) here

Further reading

Markets for information goods by Hal Varian (1998) here

ABA membership pricing (2009) here 



14.15 Modelling complex buying decisions: Can economics explain why incumbent legal providers, favourites from yester year, keep winning the panel competition? How does a firm position optimally its offering before and during panel selection?

Part I "Frictions in Markets"

Main reading

How to hold a successful beauty parade by Christopher Stoakes (1997) here

The Diamond, Mortensen and Pissarides Nobel: search and market frictions by Barbara Petrongolo (2010) here 

Further reading

Markets with search frictions compiled by the Economic Sciences Prize Committee of the Royal Swedish Academy of Sciences (2010) here

Part II "Satisficing" and the compromise effect

Main reading

Panel games: how do clients select and retain their preferred external legal advisers by Samantha Fairclough here

Task factors and compromise effect in consumer choice by Junsong Chen and Sally Rao Hill (2009) here 

(one page) Satisficing Behaviour by Christopher Tyson here  

Further reading

Microeconomics at Investopedia (2010) here


16.50 Bankers' corner: When and on what conditions will investment professionals, bankers and those in private equity, share their lucrative fees with the lawyers on the same transaction?

No reading materials. Q&A with bankers.


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