Law School 22 Scarcity: An Economic Perspective of Providing Legal Services

In this issue of law school, let's talk about the most basic concept of economics: scarcity. If economics is compared to a magnificent building, the concept of scarcity is the cornerstone of this building. We can even say that economics is a discipline that studies scarcity. Scarcity is the basis of economics, so it is naturally the underlying logic of business decision-making and the starting point of our thinking in providing legal services.

If the world is not scarce, then economics is not necessary. But at least in our "universe", scarcity is universal, even a basic fact. We can see:

Because scarcity is universal, controversy is inevitable, and in order to avoid controversy, human beings have designed rights to protect the scarcity enjoyed by the subject.

1. For example, in view of the scarcity of tangible materials, human beings invented property rights. No one is allowed to possess, use, profit or dispose of my things without authorization.

2. For example, in view of the scarcity of new ideas and concepts, human beings invented copyrights and patents. , so as to ensure the intellectual achievements of mankind.

3. For example, in view of the scarcity of market share, human beings invented fair competition and franchise, and the market order was maintained.

For example, in view of the scarcity of social security, human beings invented parental rights, and exchanged the obligation of the elders to support the younger generation in childhood for the right to be supported by the younger generation in their later years.

There are many such examples. The role of law is to "settle disputes and stop disputes" to a great extent, and disputes often begin with scarcity, which can be absolute or relative-there are many people, so there is no thought. I'm afraid that with or without me, you will be envious or even jealous, resulting in conflicts.

There are two main reasons for scarcity:

Let's talk about the first reason first. What you like, others like it. If something is hated or even feared by everyone, it will not be scarce, such as pollution, plague and war. Only those things that you and others like will be scarce, such as gold medal lawyers and limited sports cars. On the other hand, if time/quantity is limited, it will not necessarily lead to scarcity. For example, a lawyer with a bad reputation, a broken car that can't be on the road is a minority, but no one likes it, even if there is.

The second reason for scarcity is that people's needs or desires are infinite. The best example is the energy problem. In the past, life went on without electricity, but with enough electricity, human beings invented new equipment and lifestyles, consuming more electricity. The same is true for broadband networks. Humans will never think that energy is enough, and they will never think that the internet speed is fast enough.

But it is precisely because of the infinite desire of human beings that there is an inexhaustible motive force to promote the development of human society. Many seemingly useless products and meaningless inventions have piled up the trajectory of human civilization.

Since it is scarce and controversial, legal services will always exist and need to be upgraded. Therefore, from the perspective of scarcity, this will be a starting point for us to design and operate legal service products.

In the legal service market,

It is the practice of most red circle law firms and boutique law firms to occupy the high-priced and high-end legal market with professional ability and brand influence.

When most consumers cannot afford high-priced and high-end services, low-priced and high-quality services become scarce. Just like the mobile phone market, it is people's love for low prices and unlimited demand for mobile phone performance and functions that have created competition among several brands at various price points. Similarly, different purchasing power determines that the scarcity of the legal service market is also multi-level.

No lawyer understands the legal risks and needs of the artificial intelligence industry. I see, then my service is scarce; No lawyer understands the unique rules of the circuit court. If I do this, then my service is scarce. In addition, many lawyers often express or imply that their influence is scarce (for example, knowing a judge and being classmates with a prosecutor). Although this kind of behavior is illegal, it is undeniable that these lawyers have made a lot of money by virtue of this scarcity.

When there is no essential difference in the legal services we provide, lawyers with better services and better user experience are scarce. Especially in big cities with fierce competition, every conceivable service is provided. If you want to grab a slice of the stock market, you have to constantly reduce costs and increase the added value of products-which is why lawyers in big cities are actually more cost-effective.

Lawyers can explore the legal service market and explore the demand for legal services from two angles:

First of all, in the stock market

We should take the initiative to analyze industries with serious scarcity contradictions. The more scarce, the more disputes, and the stronger and more urgent the demand for legal services.

For example, the scarcity of houses and land will lead to a large number of real estate disputes; For example, deflation and scarcity of funds will lead to disputes such as private lending and disposal of non-performing assets that need to be resolved urgently; For example, the scarcity of live broadcast platforms such as online celebrities will lead to disputes between platforms and anchors, transfer disputes between platforms and non-competition disputes. ...

After we identify the market, we provide high value-added services, which occupies the scarcity of the stock market.

Second, in the incremental market.

We will find that scarcity will change with the improvement of customers' living standards, and the demand for legal services will change with the change of scarcity level:

Can you still find out what scarcity we are using from the perspective of stock and increment?

Welcome to leave a message under the column.

Law school, upgrade legal cognition with economic thinking!