Three methods of compensating lawyers are identified: fee-for-service, contingent-fee, and third-party payment. It is hypothesized that each of these methods creates very different configurations of economic incentives, some of which conflict with the best interests of clients. The possibilities for maximizing various of these economic goals are discussed along with the limits -- economic and noneconomic -- on such behavior. Finally, the article suggests some potential applications of this analysis for public policy and further research. (Publisher abstract)