Comparative Law Researches

Comparative Law Researches

The function of economic models in identifying and establishing liability rules Based on Mathematical Modeling

Document Type : Qualitative Research

Authors
Habibollah Rahimi 1
nasrin khodarahmi 2
1 associate professor in Allameh Tabatabai university, private law
2 PHD Student
Abstract
One of the most important and significant issues in the present study is how to apply economic models in identifying and establishing liability rules. The function of models in analyzing the legal phenomena, including liability rules, is to understand the decision-making logic when encountering interdisciplinary issues so that decisions made by decision-making entities can be optimized in the liability system. The application of the liability rules to achieve the optimization goal by economics makes the nature of the issue raised in these models interdisciplinary. For example, the criterion for the efficiency of liability rules is to create optimal economic incentives to apply care and activity. In fact, the problem facing the presented economic model regarding the rules of liability is to establish the liability rules in cases of unilateral incidents in such a way that the decision variables such as care and activity level, optimality, and the goal contained in the objective function are realized. While emphasizing the role of modeling in identifying and establishing liability rules, the present study strives to first determine the unilateral incident cases and present the criterion for determining these cases and second to conduct analysis of the strict rules of liability and negligence in the cases of unilateral incidents based on the modeling approach. This issue has not been addressed in the research conducted so far. Accordingly, this study presents an example of the application of the modeling method, which indeed a problem with an interdisciplinary nature is presented.



Keywords
Social welfare
Modeling
Efficiency
Social Cost

Subjects

1. Agha Nazari, Hassan, "Methodology of distinguishing between positive and normative economics and its revision in line with the theorizing of Islamic economics",", Quarterly Journal of Humanity Sciences Methodology, 2019.
2. Amini, Mansour. Shokohian, Seyyed Alireza. Optimizing the operation of the fault-based liability rule with an emphasis on the civil liability of the doctor, Journal of Legal Research, No. 76, pp. 57-82.2015.
3. Badini, Hassan. Philosophy of Civil liability, Enteshar Corporations Company, third edition,2014.
4. Badini, Hassan. Abbasi, Somayeh. "Examination of the efficiency of strict liability from the point of view of economic analysis of law", Journal of the Center for Comparative Law Studies, No. 109, pp. 3-24, 2015.
5. Badini, Hassan. khodkar, Reza. Rahmati, Parviz. "The economic scope of the Negligence Rule and its effectiveness in Iranian law", Legal Studies Journal, Volume 46, No. 1, pp. 21-39, 2015.
6. Barghi, Majid, "Customer Relationship", Customer Relationship Management Group website. 2021, at https://drcrm.ir
7. Dadgar,Yadollah. Khodkar, Reza. "Economic analysis of the rule of Strict liability and its effectiveness in Iranian law", Legal Research Journal, No. 78, pp. 55-39, 2014.
8. Rafipour, Abolfazl. Essay on modeling and applications: report of a research, journals of theory and practice in the curriculum, number 3, pp. 116-93, 2013.
9. Shahabi, Mehdi. Masoudi pour, Azadeh. "Economic analysis of law and the revival of the idea of fault in the compensation system with an emphasis on American jurisprudence", Journal of economic law, ninth year, number 4, pp. 28-46, 2013.
10. Safaei, Seyed Hossein. Rahimi, Habibollah, Civil Liability (Non-Contractual Obligations). Tehran: Samat, 2017.
11. Katouzian, Nasser, Responsibility for Production Defective Critical and Comparative Study of Producer and Consumer. Tehran: Ganj-e-Danesh Publications, 2018.
12. Katouzian, Nasser, General Rules of Contracts, Vol, 5, Fourth Edition, Tehran: Ganj-e-Danesh Publications, 2020.
13. Kazemi, Mostafa, "Mathematical modeling and its application in management". Journal of Knowledge and Development, No. 2, 1995.
14. Golchin Khiabani Azar, Negar, Research in operations 1 and 2, Soud Mahan Publications, 2019
15. Leftwich, Richard H.. Translated by Sajjadi, Mir Nizam. Price system and allocation of production resources. Tehran: Allameh Tabatabai University Press, 2008.
16. Mahmoudi, Abolfazl. Shabanzadeh Khoshroudi, Mehdi, Microeconomics 1 ,. Tehran: Payame Noor University Press, 2018.
17. Moslem, Neisi. Abdolsadeh, Peymani Foroshani, Financial Modeling Using MATLAB Software. Tehran: Allameh Tabatabai University Press, 2020.
18. Mehregan, Mohammad Reza, Advanced Operations Research. Tehran: University Book, 2016.
19. Calabresi, Guido, The Costs of Accidents; A legal and Economic Analysis, New Haven: Yale University,1970.
20. Calfee,John. Craswell, Richard, Economics of Tort Law, Massachauset: Edvard Elgar Publishing, 2007.
21. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
22. Cooter, Robert, »Economic Analysis of Punitive Damages«, Southern California,No. 56, 1982.
23. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
24. Delvin, Alvan. Fundamental Principles of law and economics, Routledge, Talor & Francis Group, London and New York, 2015.
25. Finsinger, Jörg; von Randow, Philip,» New Activities and Liabilites Rules« ,(in Ott Claus and Schäfer,Hans-Berned (eds), Okonomische Probleme des Zivilrechts, Berlin, Springer), 1991.
26. Kahneman, Daniel Thinking Fast and Slow, New York: Farrar Straus and Giroux. 2011.
27. Landes,William. Posner, Richard A, The Economic Structure of Tort Law, Cambridge,Massachusetts and London: Harvard University Press. 2003.
28. Polinsky, A, Mitchell, » Strict Liability vs. Negligence in a Market Setting«,No. 420, American Economic Review. Papers and Proceedings,1980.
29. Posner, Richard A, Economic Analysis of Law. Chicago: WOLTERS Kluwer,2010.
30. Posner,Richard A. Parisi,Francesco.editted by Sykes, Alan. O. Economic of Tort Law, Cheltenham, Northampton: An Elgar Reference Collection, 2007.
31. Schäfer,Hans-Berned. Muller-Langer,Frank,» Srtrict Liability Versus Negligence«,(2008). http: //ssrn.com/abstract+ 2062787, 1-33. Retrieved from httpp // ssrn.com/abstract= 2062787: httpp // ssrn.com/abstract= 2062787
32. Schäfer,Hans-Berned. and Ott,Claus, The Economic Analysis of Civil Law, Northampton: Massachusetts: Edward Elgar. 2004.
33. Schwartz, Gary, »Tort Law and the Economy in Nineteenth-Century America«, Yale Law Journal, 1981.
34. Shavell, Steven, » Strict Liability versus Negligence«, Journal of Legal Studies, 1980.
35. Shavell.Steven, »Economic Analysis of Accident Law«, Harvard Law School, Ma, 02138, Discussion Paper No. 396, 2002. http// paper: ssrn.com/abstract = 367800.SSRN: https://ssrn.com/abstract=367800 or http://dx.doi.org/10.2139/ssrn.367800
36. Shavell.Steven, »Economic Analysis of Accident Law«, National Bureau Of Economic Research, No. 9483, 2003. Working Paper 9694. http: //.nber. org/papers/w 9694.
37. 38. Staelin, Richard, Dowling, Grahame R. »A model of perceived risk and intended risk-handling activities«, Journal of Consumer Research, 21 (1), (1994).
38. Terry, Henry. Negligence. Harvard Law Review, Volume 29, 1915.
39. Ulen, Thomas , Johnson,Gary V» Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements«, American Economic Review,No. 80,1990.
40. Roger A. Arnold, Efficiency vs. Ethics: Which is the proper decision criterion in law cases? Journal of Libertarian Studies, Vol. VI.No.1,1982, p. 49
41. Roy, D.P & Cornwell, T.B, »The Effects of Consumer Knowledge on Responses to Event Sponsorships«, Journal of Psychology & Marketing, vol. 21 (3), (2004).
42. Welgel, Wolfgang, Economics OF The Law (A Primer), London and New York: Routledge,2008.
43. Zerbe Jr, Richard O. Economic Efficiency in Law and Economics. Cheltenham,Uk. Northampton, Ma,US, Edward Elgar,2001.

1. Agha Nazari, Hassan, "Methodology of distinguishing between positive and normative economics and its revision in line with the theorizing of Islamic economics",", Quarterly Journal of Humanity Sciences Methodology, 2019.
2. Amini, Mansour. Shokohian, Seyyed Alireza. Optimizing the operation of the fault-based liability rule with an emphasis on the civil liability of the doctor, Journal of Legal Research, No. 76, pp. 57-82.2015.
3. Badini, Hassan. Philosophy of Civil liability, Enteshar Corporations Company, third edition,2014.
4. Badini, Hassan. Abbasi, Somayeh. "Examination of the efficiency of strict liability from the point of view of economic analysis of law", Journal of the Center for Comparative Law Studies, No. 109, pp. 3-24, 2015.
5. Badini, Hassan. khodkar, Reza. Rahmati, Parviz. "The economic scope of the Negligence Rule and its effectiveness in Iranian law", Legal Studies Journal, Volume 46, No. 1, pp. 21-39, 2015.
6. Barghi, Majid, "Customer Relationship", Customer Relationship Management Group website. 2021, at https://drcrm.ir
7. Dadgar,Yadollah. Khodkar, Reza. "Economic analysis of the rule of Strict liability and its effectiveness in Iranian law", Legal Research Journal, No. 78, pp. 55-39, 2014.
8. Rafipour, Abolfazl. Essay on modeling and applications: report of a research, journals of theory and practice in the curriculum, number 3, pp. 116-93, 2013.
9. Shahabi, Mehdi. Masoudi pour, Azadeh. "Economic analysis of law and the revival of the idea of fault in the compensation system with an emphasis on American jurisprudence", Journal of economic law, ninth year, number 4, pp. 28-46, 2013.
10. Safaei, Seyed Hossein. Rahimi, Habibollah, Civil Liability (Non-Contractual Obligations). Tehran: Samat, 2017.
11. Katouzian, Nasser, Responsibility for Production Defective Critical and Comparative Study of Producer and Consumer. Tehran: Ganj-e-Danesh Publications, 2018.
12. Katouzian, Nasser, General Rules of Contracts, Vol, 5, Fourth Edition, Tehran: Ganj-e-Danesh Publications, 2020.
13. Kazemi, Mostafa, "Mathematical modeling and its application in management". Journal of Knowledge and Development, No. 2, 1995.
14. Golchin Khiabani Azar, Negar, Research in operations 1 and 2, Soud Mahan Publications, 2019
15. Leftwich, Richard H.. Translated by Sajjadi, Mir Nizam. Price system and allocation of production resources. Tehran: Allameh Tabatabai University Press, 2008.
16. Mahmoudi, Abolfazl. Shabanzadeh Khoshroudi, Mehdi, Microeconomics 1 ,. Tehran: Payame Noor University Press, 2018.
17. Moslem, Neisi. Abdolsadeh, Peymani Foroshani, Financial Modeling Using MATLAB Software. Tehran: Allameh Tabatabai University Press, 2020.
18. Mehregan, Mohammad Reza, Advanced Operations Research. Tehran: University Book, 2016.
19. Calabresi, Guido, The Costs of Accidents; A legal and Economic Analysis, New Haven: Yale University,1970.
20. Calfee,John. Craswell, Richard, Economics of Tort Law, Massachauset: Edvard Elgar Publishing, 2007.
21. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
22. Cooter, Robert, »Economic Analysis of Punitive Damages«, Southern California,No. 56, 1982.
23. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
24. Delvin, Alvan. Fundamental Principles of law and economics, Routledge, Talor & Francis Group, London and New York, 2015.
25. Finsinger, Jörg; von Randow, Philip,» New Activities and Liabilites Rules« ,(in Ott Claus and Schäfer,Hans-Berned (eds), Okonomische Probleme des Zivilrechts, Berlin, Springer), 1991.
26. Kahneman, Daniel Thinking Fast and Slow, New York: Farrar Straus and Giroux. 2011.
27. Landes,William. Posner, Richard A, The Economic Structure of Tort Law, Cambridge,Massachusetts and London: Harvard University Press. 2003.
28. Polinsky, A, Mitchell, » Strict Liability vs. Negligence in a Market Setting«,No. 420, American Economic Review. Papers and Proceedings,1980.
29. Posner, Richard A, Economic Analysis of Law. Chicago: WOLTERS Kluwer,2010.
30. Posner,Richard A. Parisi,Francesco.editted by Sykes, Alan. O. Economic of Tort Law, Cheltenham, Northampton: An Elgar Reference Collection, 2007.
31. Schäfer,Hans-Berned. Muller-Langer,Frank,» Srtrict Liability Versus Negligence«,(2008). http: //ssrn.com/abstract+ 2062787, 1-33. Retrieved from httpp // ssrn.com/abstract= 2062787: httpp // ssrn.com/abstract= 2062787
32. Schäfer,Hans-Berned. and Ott,Claus, The Economic Analysis of Civil Law, Northampton: Massachusetts: Edward Elgar. 2004.
33. Schwartz, Gary, »Tort Law and the Economy in Nineteenth-Century America«, Yale Law Journal, 1981.
34. Shavell, Steven, » Strict Liability versus Negligence«, Journal of Legal Studies, 1980.
35. Shavell.Steven, »Economic Analysis of Accident Law«, Harvard Law School, Ma, 02138, Discussion Paper No. 396, 2002. http// paper: ssrn.com/abstract = 367800.SSRN: https://ssrn.com/abstract=367800 or http://dx.doi.org/10.2139/ssrn.367800
36. Shavell.Steven, »Economic Analysis of Accident Law«, National Bureau Of Economic Research, No. 9483, 2003. Working Paper 9694. http: //.nber. org/papers/w 9694.
37. 38. Staelin, Richard, Dowling, Grahame R. »A model of perceived risk and intended risk-handling activities«, Journal of Consumer Research, 21 (1), (1994).
38. Terry, Henry. Negligence. Harvard Law Review, Volume 29, 1915.
39. Ulen, Thomas , Johnson,Gary V» Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements«, American Economic Review,No. 80,1990.
40. Roger A. Arnold, Efficiency vs. Ethics: Which is the proper decision criterion in law cases? Journal of Libertarian Studies, Vol. VI.No.1,1982, p. 49
41. Roy, D.P & Cornwell, T.B, »The Effects of Consumer Knowledge on Responses to Event Sponsorships«, Journal of Psychology & Marketing, vol. 21 (3), (2004).
42. Welgel, Wolfgang, Economics OF The Law (A Primer), London and New York: Routledge,2008.
43. Zerbe Jr, Richard O. Economic Efficiency in Law and Economics. Cheltenham,Uk. Northampton, Ma,US, Edward Elgar,2001.

1. Agha Nazari, Hassan, "Methodology of distinguishing between positive and normative economics and its revision in line with the theorizing of Islamic economics",", Quarterly Journal of Humanity Sciences Methodology, 2019.
2. Amini, Mansour. Shokohian, Seyyed Alireza. Optimizing the operation of the fault-based liability rule with an emphasis on the civil liability of the doctor, Journal of Legal Research, No. 76, pp. 57-82.2015.
3. Badini, Hassan. Philosophy of Civil liability, Enteshar Corporations Company, third edition,2014.
4. Badini, Hassan. Abbasi, Somayeh. "Examination of the efficiency of strict liability from the point of view of economic analysis of law", Journal of the Center for Comparative Law Studies, No. 109, pp. 3-24, 2015.
5. Badini, Hassan. khodkar, Reza. Rahmati, Parviz. "The economic scope of the Negligence Rule and its effectiveness in Iranian law", Legal Studies Journal, Volume 46, No. 1, pp. 21-39, 2015.
6. Barghi, Majid, "Customer Relationship", Customer Relationship Management Group website. 2021, at https://drcrm.ir
7. Dadgar,Yadollah. Khodkar, Reza. "Economic analysis of the rule of Strict liability and its effectiveness in Iranian law", Legal Research Journal, No. 78, pp. 55-39, 2014.
8. Rafipour, Abolfazl. Essay on modeling and applications: report of a research, journals of theory and practice in the curriculum, number 3, pp. 116-93, 2013.
9. Shahabi, Mehdi. Masoudi pour, Azadeh. "Economic analysis of law and the revival of the idea of fault in the compensation system with an emphasis on American jurisprudence", Journal of economic law, ninth year, number 4, pp. 28-46, 2013.
10. Safaei, Seyed Hossein. Rahimi, Habibollah, Civil Liability (Non-Contractual Obligations). Tehran: Samat, 2017.
Katouzian, Nasser, Responsibility for Production Defective Critical and Comparative Study of Producer and Consumer. Tehran: Ganj-e-Danesh Publications, 2018.
12. Katouzian, Nasser, General Rules of Contracts, Vol, 5, Fourth Edition, Tehran: Ganj-e-Danesh Publications, 2020.
13. Kazemi, Mostafa, "Mathematical modeling and its application in management". Journal of Knowledge and Development, No. 2, 1995.
14. Golchin Khiabani Azar, Negar, Research in operations 1 and 2, Soud Mahan Publications, 2019
15. Leftwich, Richard H.. Translated by Sajjadi, Mir Nizam. Price system and allocation of production resources. Tehran: Allameh Tabatabai University Press, 2008.
16. Mahmoudi, Abolfazl. Shabanzadeh Khoshroudi, Mehdi, Microeconomics 1 ,. Tehran: Payame Noor University Press, 2018.
17. Moslem, Neisi. Abdolsadeh, Peymani Foroshani, Financial Modeling Using MATLAB Software. Tehran: Allameh Tabatabai University Press, 2020
18. Mehregan, Mohammad Reza, Advanced Operations Research. Tehran: University Book, 2016.
19. Calabresi, Guido, The Costs of Accidents; A legal and Economic Analysis, New Haven: Yale University,1970.
20. Calfee,John. Craswell, Richard, Economics of Tort Law, Massachauset: Edvard Elgar Publishing, 2007.
21. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
22. Cooter, Robert, »Economic Analysis of Punitive Damages«, Southern California,No. 56, 1982.
23. Cooter, Robert; Ulen, Tomas, Law And Economics, Berkeley: Berkeley Law Book, 2016.
24. Delvin, Alvan. Fundamental Principles of law and economics, Routledge, Talor & Francis Group, London and New York, 2015.
25. Finsinger, Jörg; von Randow, Philip,» New Activities and Liabilites Rules« ,(in Ott Claus and Schäfer,Hans-Berned (eds), Okonomische Probleme des Zivilrechts, Berlin, Springer), 1991.
26. Kahneman, Daniel Thinking Fast and Slow, New York: Farrar Straus and Giroux. 2011.
27. Landes,William. Posner, Richard A, The Economic Structure of Tort Law, Cambridge,Massachusetts and London: Harvard University Press. 2003.
28. Polinsky, A, Mitchell, » Strict Liability vs. Negligence in a Market Setting«,No. 420, American Economic Review. Papers and Proceedings,1980.
29. Posner, Richard A, Economic Analysis of Law. Chicago: WOLTERS Kluwer,2010.
30. Posner,Richard A. Parisi,Francesco.editted by Sykes, Alan. O. Economic of Tort Law, Cheltenham, Northampton: An Elgar Reference Collection, 2007.
31. Schäfer,Hans-Berned. Muller-Langer,Frank,» Srtrict Liability Versus Negligence«,(2008). http: //ssrn.com/abstract+ 2062787, 1-33. Retrieved from httpp // ssrn.com/abstract= 2062787: httpp // ssrn.com/abstract= 2062787
32. Schäfer,Hans-Berned. and Ott,Claus, The Economic Analysis of Civil Law, Northampton: Massachusetts: Edward Elgar. 2004.
33. Schwartz, Gary, »Tort Law and the Economy in Nineteenth-Century America«, Yale Law Journal, 1981.
34. Shavell, Steven, » Strict Liability versus Negligence«, Journal of Legal Studies, 1980.
35. Shavell.Steven, »Economic Analysis of Accident Law«, Harvard Law School, Ma, 02138, Discussion Paper No. 396, 2002. http// paper: ssrn.com/abstract = 367800.SSRN: https://ssrn.com/abstract=367800 or http://dx.doi.org/10.2139/ssrn.367800
36. Shavell.Steven, »Economic Analysis of Accident Law«, National Bureau Of Economic Research, No. 9483, 2003. Working Paper 9694. http: //.nber. org/papers/w 9694.
37. 38. Staelin, Richard, Dowling, Grahame R. »A model of perceived risk and intended risk-handling activities«, Journal of Consumer Research, 21 (1), (1994).
37. 38. Staelin, Richard, Dowling, Grahame R. »A model of perceived risk and intended risk-handling activities«, Journal of Consumer Research, 21 (1), (1994).
38. Terry, Henry. Negligence. Harvard Law Review, Volume 29, 1915.
39. Ulen, Thomas , Johnson,Gary V» Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements«, American Economic Review,No. 80,1990.
40. Roger A. Arnold, Efficiency vs. Ethics: Which is the proper decision criterion in law cases? Journal of Libertarian Studies, Vol. VI.No.1,1982, p. 49
41. Roy, D.P & Cornwell, T.B, »The Effects of Consumer Knowledge on Responses to Event Sponsorships«, Journal of Psychology & Marketing, vol. 21 (3), (2004).
42. Welgel, Wolfgang, Economics OF The Law (A Primer), London and New York: Routledge,2008.
43. Zerbe Jr, Richard O. Economic Efficiency in Law and Economics. Cheltenham,Uk. Northampton, Ma,US, Edward Elgar,2001.