| Compensation for damages arising from traffic accident concerns the immediate interest of the related party. A timely and precise defining of the party to bear the obligation of compensation for damage is of great significance. The principle for the defining of this liable party shall be an innovative method based on the dualistic criteria of "operation control and operation interests". This method does not only try to achieve an impartial division of compensation for damages, but also aims to prevent traffic accident by a way of promoting good behavior. An optimized way of preventing traffic accident is to analyze and compare the possible social consequences that may result from the defined liable party. Legal economics method, game theory and equilibrium principle can be applied in this respect. That is, we can presume either party as the liable party and then compare the possible measures that could be taken by all the related parties accordingly. As each party will pursue the maximal interest making use of the existing resources, it is thus reasonable to define the reliable party as the party whose definition would achieve the optimized social consequence.
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