National Customary Law In Economic Analysis

From the produce of the Economic Analysis of Law in 1960s, it has gotten wide-ranging implications all over the world. It has not only been widely used to analyze the department laws, but also used to analyze the non-market behaviors. The scholars try to find the economic rationality in different kinds of areas. The article tries to put the theory into the analysis of the Minorities'Customary Law in order to find the implicit economic rationality in them.ChapterⅠconcerns the transaction cost in Minorities'Customary Law. Section I was an introduction to the Economic Analysis of Law. Ronald Coase firstly proposed the concept named transaction cost in 1937. He published another important article The Problem of Social Cost in 1960. Then the concept soon became one of the most important concepts of Economic Analysis of Law. It has been proved that transaction cost exists in daily life everywhere. One of the most important aims developing all kinds of systems is to reduce the transaction cost. SectionⅡtries to explain the cost in silent trade and the gift exchange by comparison with the potential choices to find the advantages of them.ChapterⅡconcerns the information cost and the system choice according to it. The primitive society was technology backward, to find, protect and send the messages all cost too much. In order to adapt to the situation, the people created the systems. Sometimes they had to adapt to the high information cost, they created the strict liability system and god-judge system and so on. Sometimes they tried to find some information conveniently through their daily life experience. They distinguished the people by their age, gender, and their daily performance and so on.ChapterⅢconcerns the cost of the Peimingjia system of the Tibetans. SectionⅠ, I studied the cost of blood revenge system, such as the opportunity cost and sunk cost. On the contrary, the Peimingjia system can avoid the costs effectively. So it is a great progress to save the social cost. SectionⅡⅠanalyze the system changes of the Peimingjia system. By analyzing the 3 key changes in the history, I find that they all aims to reduce the transaction cost by reducing the type of cases. SectionⅢⅠstudied the economic significance of the compensation to the three parties of the Peimingjia system. To the one who did the harm, it is a severe punishment, if it takes the most part of the wealth belonging to his family. To the victim, it is a mixture of spirit compensation and material compensation. His close families get the less half; his tribe shares some; the rest was presented to the temple to afford to salvage the dead. It was connected to the social structure and reasonable once. But with the development of the world, it is not reasonable anymore. If we want to resolve the conflict between the State Law and the Minorities'Customary Law, we have to pay our attention to the reasonable factors.Chapter IV concerns the efficiency in the primitive society. We once thought they lived an inefficient life. After the study, I found that the primitive society was full of risks, they were lack of foods, and they were threatened by different kinds of disasters. They had to work more efficiently, if not, they could not survive. They were nothing except in the collective. They haunt collectively, they slash and born together, in order to be more efficient, it was a way to take out the economics of scale. In the mediation of the disputes, the Minorities'Customary Law is more efficient than the State Law. It can save the time, negotiation costs and the implementation costs.Chapter V concerns the risk-spreading in the primitive society. Now that they were in very dangerous situation, they had to spread out the danger to be safe. Usually they shared their foods in their tribe, in order to avoid the risk sometimes they can not haunt the animals or get the wild fruits timely. They took the compensation to the victim together, if the one who did the harm can not afford it by his family. Because they were a collective, they created the wealth for the collective; they were the most important wealth of the collective. But they would kill a recidivist who made the loss once and once again, he was the bigger risk.In a word, when the resource was limited and technique was backward, how to reduce the costs and how to work more efficiently were very important. It had a significant influence on the formation and change of their systems. To find out the regulation in the rules is helpful to understand and explain the Minorities'Customary Law.