The Legal Market Outline: As A Theoretical Preface Of The Economic Analysis Of Law

On the surface, the market mechanisms fail because the market itself is flawed,but essentially the socio-economic system, especially the legal system causedproblems. A reasonable legal system can reduce transaction costs. The legal system,however, is never infinite existent. On the contrary, it is a product of human societyand a scarce resource. Society needs legal study to continue to maximize forindividual interests rather than to maximize the interests of society. For the scarcity ofthe legal system, people must pay a certain price to produce it and use it, that is to say,there was a contradiction between the needs of law and the supply of it. Thecontradiction between supply and demand will inevitably leads to the transactions,and the transaction will form the legal market, which is the basis of our study.This paper includes five parts, namely introduction to the legal market overview,legal demand, the law of supply and legal production.The introductory part mainly analysis the feasibility of the economic analysis oflaw. Transplantation for legal market is shaped by the concept of market economics,and are able to transplanted the concept of the market in economics into law becauseof the market and law with homogeneity and compatibility, as the resourcesallocation mechanism are based on the resource optimal configuration for the pursuitof goals. This is an opportunity of leading the legal market.The first part discusses the basic theory of the legal market, which means that thelegal system is a scarce resource, legal resource allocation principle, the legal marketand its content, and our legal market structure type.The second part discusses legal needs, concerning the characteristics of the legalneeds changes, the constraints of the legal needs and the path and principles to meetthe legal needs.The third part discusses the legal supply, which involves characteristics of legalrequirements, legal requirements and the legal system change, legal requirementsconstraints and actual supply of the law. The forth part discusses legal production, concerning the legal production costanalysis and legal analysis and legal production process of the production functionrights conflict with the legal system paradox the political jurisprudence predicament.Concluding the above analysis of the contents, the legal market in China shouldpay attention to the following several points: first, the state should clearly grasp thepreferences of the people for the legal needs; second, to prevent and overcome thetendency of the erroneous theory of law omnipotent, rational treatment to civil law isneeded; third, the state should consider the legal costs-revenue problem, cautiouslylegislate; fourth, our country develops law and encourages theoretical innovation.