Economic Analysis On The Infringement Damage Compensation

Since the 60s of 20th century, domestic and international jurists and economists began to discuss on the field of law & regulation through economical point of view. After 20 years of research and exploration, "Tort Liability Act" of our country had finally put into practice since July 1st 2010.It is an important civil rights protection law in our country, which is of great significance to protect the lawful rights and interests of civil subject, definite tort liability, prevent and penalize infringement, and promote social harmony and stability. The "Tort Liability Act" has many light spots, however, it also has some omissions. This article sums up the problems that relating to tort damages compensation in the "Tort Liability Act", besides, we also try to use economical theories to analyze the issue of infringement damage compensation, including the theory of transaction cost , opportunity cost and cost-benefit theory. At last, after learning from foreign advanced experience in legislation premise, we put forward several supplementary suggestions to further perfect tort compensation system.Firstly, this article proposes that the disciplinary system relating to tort damages for violations is not strong, besides, the operation about damage compensation is not convenient in this law, and summarizes the research on this topic in global and international academe.In the first part, we mainly put forward to the theory and realistic significance of infringement damage compensation, and expound research results about this question at home and abroad. In the second part, we explain the present tort law and point out the main problem in it: 1. the scope of infringement activities is limited, it just contain fields of civil disputes; 2. the punishment of the infringement damage compensation is not severe enough; 3. the calculation of compensation amounts is not accurate. At the third part of this article, we used transaction cost theory, opportunity cost theory and cost-benefit theory to analyze the compensation for infringement. The forth part gives out some recommendations for reforming the infringement damage compensation, besides, summarize the development trend of the infringement compensation laws and raise several supplementary suggestions for perfecting tort compensation system: 1.we should enlarge the scope of compensation step by step, involve business infringement, spiritual injury and property damage. 2, we should increase the amount of compensation, fully cover the total loss, to enforce the prevention and punishment function. 3. we should improve the calculation method for direct and indirect loss, pure economic loss more accurately. The compensation for property loss and the special value of the property needs to be calculated by present market price. 4. we should restrict the discretion power of the judge, and the judges need to improve the enforcement capabilities and level.