Economic Analysis Of Damage Compensation Law

In this thesis,we will analyze the existing law system of damages from economics perspective view. In the tort law system, the abuse of the principle of fairness even shakes the whole social system of tort laws, the principle of fairness holds a critical attitude. This research method to use is game theory with thinking of forward-looking ideas, coupled with Hand Formula, and, along with the existing liability insurance and social security system.In this environment, the existing law of damages will be restudied.The author believe that damages law should focus on preventing damage to magnify and reduce the social costs, therefore, we will need to create the most incentive on the benefits. And, damages system should not be only limited to tort compensation, but to a combination of existing liability insurance system and social security system, all three together constitute the existing damages Law system.From a certain perspective, the tort system is a social cost of waste, tort law can't bring a bit of social benefits, it is only the distribution of wealth between the people and the victims. As some inevitably will occur tort accident, but if we adopt certain social incentives, it can reduce accident incidence, thereby reducing social costs.Economic Analysis of Law are not intended to teach what we need to make, but gave an analysis and then determine what kind of social system is more appropriate, therefore, we can say that, after the economic analysis of law allocation of social resources, the damage compensation law is more understanding and evaluation.In addition, the author apply the tools of economics in tort law for a number of stylized case.a simple economic tool to draw some basic conclusions, and, due to the complex system of damages and the changing of the social environment, we can only continue to draw a more appropriate system of damage compensation law.