The most commonly known form of results-based pricing is a practice called contingency pricing, used by lawyers.
(A)
Therefore, only an outcome in the client’s favor is compensated. From the client’s point of view, the pricing makes sense in part because most clients in these cases are unfamiliar with and possibly intimidated by law firms. Their biggest fears are high fees for a case that may take years to settle.
(B)
By using contingency pricing, clients are ensured that they pay no fees until they receive a settlement. In these and other instances of contingency pricing, the economic value of the service is hard to determine before the service, and providers develop a price that allows them to share the risks and rewards of delivering value to the buyer.
(C)
Contingency pricing is the major way that personal injury and certain consumer cases are billed. In this approach, lawyers do not receive fees or payment until the case is settled, when they are paid a percentage of the money that the client receives.
* intimidate: 위협하다
