Abstract

This study examines the relationship between advertising and the quality of three relatively routine legal services. The nature of the services examined made it possible to use attorney time input data to measure output quality. The study's data were collected via attorney surveys conducted in seventeen metropolitan areas across the U.S. The study's findings suggest that advertising and average output quality are inversely related in routine legal service markets. The policy implications of such findings depend critically on the level of offered quality prior to the advent of advertising. If one assumes that attorneys offered inefficiently high levels of service quality to justify their non-competitive prices, then this study's findings suggest that advertising serves to move the average level of quality in the direction of greater efficiency.

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