A Game Theory Approach To Some Legal Issues Concerning Shipping Liability System

The shipping industry, which plays an important role in the Chinese economy, needs a comprehensive and effective shipping legal system to guarantee its healthy and sustainable development. The liability system, which is responsible for the recovery and the punishment, is an important part of this legal system and has an irreplaceable value in the formation of shipping order.In view of the tendency of economic integration and internationalization of modern shipping, the shipping liability system of a given country should not only meet the needs of shipping industry at home but also keep pace of the development of the corresponding system abroad. We need a rational approach and a scientific point of view to evaluate the existent shipping liability system in China. The modernization of the system itself will come true by affirming, modifying, and repealing the existing rules.This study tends to explore five issues: the subject of oil pollution damage, responsibility of the escaped vessel, principle of liability pertaining to compensation of collision, immunity of nautical fault and the limitation of liability for maritime claims. The study adopts a game approach, accompanied by a combing of the current Chinese legal documents and a review of some legal theories related to shipping. The findings from the game analysis offer a solid foundation for the assessment of the effect of the existent system and the making of some modification or suggestion.The identification of the subject of liability for oil pollution damage is vital to the healthy development of shipping industry and the protection of victims. Considering the conflicts between domestic laws and international conventions, the incongruities between domestic laws and disagreement between legislation and judicature, we fully realize the importance of striking a balance between different parties, which calls for an analysis of the said issues from the game theory. Therefore a game model was established and game analysis was made in the study. This dissertation claims that the owner of spilled oil ships is the sole subject and that international conventions should be applied to all domestic areas. Payment rate for the victim can be enhanced through the establishment or addition of the oil damage compensation fund.Hit-and-run not only challenges the authority of law but also hurts the victims of the accident. In light of the present condition characterized by a high level of hit-and-runs and a weak punishment, we built up a game theory-based monitor model and applied it to the analysis of the mentioned problems. Following the analysis are such feasible measures as the addition of compulsive requirement for ships' identifiability, an effective coordination mechanism between the concerned departments, and the intensification of punishment.principle of liability involves the shouldering of responsibility for giving evidences and the protection of victims. A game theory-based analysis reveals that both the equality-oriented and the proportion-oriented principle of liability can encourage the litigants to take precautions against collision. The author holds that the existing proportion-oriented principle should be upheld to ensure a fair play. The exception of nautical fault is a controversial issue in terms of either theory or system. Although the abolition of clauses regarding exception of nautical fault is helpful to the upholding of fairness, it is wise to keep these clauses because they are an integrated part of the whole system and are widely accepted.The regulations concerning the limitation of liability for maritime claims in serious sea accents are critical to the healthy development of the shipping industry. The conflict between the interests of loss-makers and the victims, however, makes the two parties concerned unable to reach an agreement on the amount of compensation. The gamble theory-based analysis made in this study demonstrates that such measures as dynamic quota system, expanding the scope of subjects who hold limited liability and ships can be adopted to achieve a dynamic equilibrium of the interests of both sides.Since the environment wherein legislation happens is essential to the legislation itself and the principles of legislation guide the process of law-making, the author of this dissertation made a list of eight requirements for the construction of law-making context and six principles that guide legislation.