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Defendants who are frequent targets of lawsuits (repeat defendants) often hire full-time (in-house) lawyers rather than hiring lawyers on an hourly basis as cases arise.
Defendants who are frequent targets of lawsuits (repeat defendants) often hire full-time ("in-house") lawyers rather than hiring lawyers on an hourly basis as cases arise. The effect of a full-time lawyer is to lower the defendant's variable cost of taking a case to trial since the lawyer must be paid even if the case settles. In terms of the settlement model in the text, this implies that C^f_d
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