If buyers lack data on price and quality, sellers will charge more and be reluctant to innovate. Market data solves this problem.
When my co-founder Ketan and I were at Harvard Law School together in the late 1990s, we knew something was fundamentally broken in the legal profession. We saw the massive dollars being thrown at law school graduates, the perverse incentives in how law firms deliver their work, and the absence of any true market forces in how the industry functioned. Any high school economics student could make the obvious conclusion—there is no capitalism in the legal services market.
And strangely, virtually no one talked about this enormous elephant in the room. Everyone accepted this bizarre paradigm because “that’s the way it’s always been.” Despite the huge role the law plays in our society, culture, and government, the emperor has no clothes—yet, no one was willing to say it.
Continue Reading There is no capitalism in legal services. Or is there? (209)