Consumer Information and the Pricing of Legal Services

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 In a classic article on the economics of information, George Stigler discussed the impact advertising could have on the dispersion of seller prices quoted in a marketplace.1 As one source of price information, advertising reduces search costs for consumers wishing to obtain some product or service at its lowest possible price.2 The more comparison shopping consumers do because of lower search costs, the better informed they will be about seller price differences and, hence, the less price dispersion the market will support.