Analysis Of The Impact In Efficiency Of Format Contract

In the modern economies of large-scale production and the high frequency of trading ,the format contracts become very popular ,because of its efficient way of conclusion of contracts and significant convenience .It is generally believed that the format contracts achieve high efficiency at the expense of justice ,in which efficiency and justice form a mutually exclusive relationship .However ,in this paper ,the format contracts will be deeply analyzed ,by the tools of game theories ,and in the standard of efficiency ,to reveal the real affects of format contracts in efficiency In a variety of premises . The Purposes of this article is to draw such a conclusion that in format contracts justice and efficiency is unified to some extent ,and in a format contract the wealth of society could be maximized when the benefits of co-operation are distributed in a equal potion .It is wished this paper could depict the real impact in efficiency of format contract ,and illustrate the fact that the quality in distribution of benefits of co-operation not only result in justice ,but also in maximization of social wealth ,which leads to the contribution to the exploration of regulation of format contracts .The first part of this paper reveals the relationship of justice and efficiency , the importance of efficiency in law system ,and emphasizes the significance of efficiency in law studying .Then a general exposition of the impact of format contracts in efficiency is made ,which indicates that the impact includes both positive ones and negative ones .In the second part of this paper ,some of the studying tools of Law and Economics ,including game theory and efficiency standard ,are generally introduced ,in order to make preparation for the analysis in the next part of this paper.The third part is the most important one in this paper ,in which the analysis of impact in efficiency of format contracts is done ,by the tools of game theory and efficiency standard .In this part ,the conclusion that in a game of complete information ,the maker of a format contract set up the contract terms which not only lead to the maximization of interest for himself ,but also the maximization of interest for the whole society ;while in a game of incomplete information ,the selfish desire of maximizing the interest of format contract maker may set up the co-operation terms which fail the maximization both of individual interest and social interest .Summarizing this part leads to the conclusion that severely unequal distribution of co-operation benefits results in the reduce of economical efficiency of the whole society ,and the recover of equity helps archiving the maximization of social interest ,which means in some extent , justice and efficiency is unified.The last part reveals the special condition in China that format contracts help certain social groups to grab illegal benefits .Therefore ,the regulation of format contracts is of special significance .