What drives professional services prices?

Edouard Ribes (1)

1 CERNA i3 - Centre d'économie industrielle i3

In this paper, client’s welfare maximization is shown to result in a matching mechanism between large clients and high quality professional services workers. On the other hand, professional services workers welfare maximization results in their association in firms under a principle of quality standard. The associated competitive equilibrium results in a definition of prices under a condition of market structure. This parameters of this price model are estimated across 26 OECD countries and over the last 10 years to define the market structure of the legal, accounting, management consulting and engineering professional services sector and to explain the prices differences between sectors. 2010 JEL Classification. L84;L14;D40;L15;C78

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

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

Edouard Ribes. What drives professional services prices?. 2018. ⟨hal-01825739v2⟩