What drives Professional services firms prices? *

Edouard Ribes (1)

1 CERNA i3 - Centre d'économie industrielle i3

In this paper, I propose a competitive equilibrium in which a matching occurs between high level quality PSFs and large clients. I demonstrate that this means that PSFs price variations only depends in 4 variables: the number of potential local clients, their average revenue, the number of competing PSFS and the number of PSFs employees. I finally show that across 26 OECD countries and over the last 10 years this model can explain more than 90% of PSFs price variations across country and time. 2010 JEL Classification. L84;L14;D40;L15;C78

Mots clés: Professional Services; Services Quality; Pricing; Matching theory

Domaines: Economies et finances; Pricing [q-fin.PR]; Microstructure des marchés [q-fin.TR]

Edouard Ribes. What drives Professional services firms prices? *. 2018. ⟨hal-01825739v1⟩