scholarly journals Mechanism of Instrumental Game Theory in the Legal Process via Stochastic Options Pricing Induction

2020 ◽  
pp. 152-173
Author(s):  
Kwadwo Osei Bonsu ◽  
Shoucan Chen
Keyword(s):  
Game Theory ◽  
Economic Theory ◽  
Transaction Cost ◽  
Tort Law ◽  
Contract Law ◽  
Options Pricing ◽  
Legal Process ◽  
Procedural Law ◽  
Backwards Induction ◽  
Exchange Information

Economic theory has provided an estimable intuition in understanding the perplexing ideologies in law, in the areas of economic law, tort law, contract law, procedural law and many others. Most legal systems require the parties involved in a legal dispute to exchange information through a process called discovery. The purpose is to reduce the relative optimisms developed by asymmetric information between the parties. Like a head or tail phenomenon in stochastic processes, uncertainty in the adjudication affects the decisions of the parties in a legal negotiation. This paper therefore applies the principles of aleatory analysis to determine how negotiations fail in the legal process, introduce the axiological concept of optimal transaction cost and formulates a numerical methodology based on backwards induction and stochastic options pricing economics in estimating the reasonable and fair bargain in order to induce settlements thereby increasing efficiency and reducing social costs.

Classifying precontractual liability: a comparative analysis

Legal Studies ◽  
2001 ◽  
Vol 21 (2) ◽  
pp. 153-191 ◽  
Author(s):  
Joachim Dietrich
Keyword(s):  
Common Law ◽  
Civil Law ◽  
Tort Law ◽  
Contract Law ◽  
Common Elements ◽  
Ongoing Debate ◽  
Unjust Enrichment ◽  
The Common ◽  
Initial Focus

The common law has solved questions of liability arising in the context of precontractual negotiations by resort to a range of different doctrines and approaches, adopting in effect ‘piecemeal’ solutions to questions of precontractual liability. Consequently, debate has arisen as to how best to classify or categorise claims for precontractual work and as to which doctrines are best suited to solving problems arising from anticipated contracts. The purpose of this article is to consider this question of how best to classify (cases of) precontractual liability. The initial focus will be on the ongoing debate as to whether principles of contract law or principles of unjust enrichment can better solve problems of precontractual liability. I will be suggesting that unjust enrichment theory offers little by way of explanation of cases of precontractual liability and, indeed, draws on principles of contract law in determining questions of liability for precontractual services rendered, though it does so by formulating those principles under different guises. Irrespective, however, of the doctrines utilised by the common law to impose liability, it is possible to identify a number of common elements unifying all cases of precontractual liability. In identifying such common elements of liability, it is necessary to draw on principles of both contract and tort law. How, then, should cases of precontractual liability best be classified? A consideration of the issue of classification of precontractual liability from a perspective of German civil law will demonstrate that a better understanding of cases of precontractual liability will be gained by classifying such cases as lying between the existing categories of contract and tort.

scholarly journals Management of enterprise economic security: sinergistical approach

2019 ◽  
pp. 30-33
Author(s):  
Liudmyla PETRENKO ◽  
Larysa IVANOVA
Keyword(s):  
Economic Theory ◽  
Control System ◽  
Dynamic Equilibrium ◽  
Modern Society ◽  
Economic Security ◽  
Economic Systems ◽  
Basic Direction ◽  
Exchange Information ◽  
Nonlinear Character ◽  
Dynamic Cooperation

One of main problems of modern society there is complex safety of the difficult systems of different nature. Today the problems of creation of the difficult nonlinear dynamic reliable systems go out on the first plan. It stipulates exceptional theoretical and practical meaningfulness of the use of methods of synergetics in a management the systems. An improvement of the existent theoretical and methodological going is near organization of control system by economic security of enterprise from position of sinergistical approach. An increase of multi-variant approach of development of the economic systems is reason of change of methodology of economic researches and a nonlinear economic theory comes on changing to the traditional economic theory. Invariants, non-linearity, coherentness and factorable synthesis, are the base concepts of sinergistical theory of management. Any socio-economic system presents by a soba complex of functional subsystems, that is bound by inter se the processes of intensive dynamic cooperation, exchange information. Application of synergetics showed in researches of economy, that most cases have an evolution direction of that through nonlinear character of connections in the system is determined by the action of insignificant factors basic direction of motion of the socio-economic systems, as a rule, informative, that prove in bifurcational processes. The condition of development and viability of any enterprise are maintenances of dynamic equilibrium, that are the aim of the system of economic security of enterprise — it’s attractor. By principles of management of enterprise economic security from positions sinergistical approaches are: complication, non-linearity, dynamic. The system of economic security of enterprise is base on principle of feed-back. Leaning on sinergistical approach, set forth raising of sinergistical synthesis of nonlinear control system by economic security. Exactly sinergistical effects that are characterized as management results in the systems cause the change of quality, and are the adequate instrument of providing of economic security.

scholarly journals The Law of Obligations

2018 ◽  
Author(s):  
Michael Lobban
Keyword(s):  
United States ◽  
Tort Law ◽  
The United States ◽  
Contract Law ◽  
Public Law ◽  
The Other ◽  
Economic Changes ◽  
American Law ◽  
Anglo American ◽  
Unifying Principles

The Anglo-American law of obligations was profoundly reshaped in the two centuries after 1800, driven by social and economic changes, and changes in legal institutions and doctrines. In contract law, nineteenth-century jurists increasingly sought to put the rules of law into a coherent rational framework (inspired by continental models resting on will theory), though they soon found that this theory could not explain many contractual doctrines. In tort law, jurists were also divided over whether unifying principles underlying tort could be uncovered, with formalist efforts to find such principles being challenged by Realists who argued that tort was in effect ‘public law in disguise’. The quest for underlying principles was also pursued by scholars of unjust enrichment, first in the United States and subsequently in England; though as in the other areas of obligations, by the end of the twentieth century, there was no consensus on whether this was possible.

Introduction

2014 ◽  
Author(s):  
Robert D. Cooter ◽  
Ariel Porat
Keyword(s):  
Social Welfare ◽  
Strict Liability ◽  
Tort Law ◽  
Contract Law ◽  
Private Law ◽  
The Law ◽  
The Cost

This book examines how the law of torts, contracts, and restitution can be improved by showing how private law reduces the cost of accidents, lubricates bargains, and encourages unrequested benefits. It considers the two pervasive rules of tort law that provide incentives for actors to reduce accident costs: strict liability and negligence. It also explains how contract law achieves effiency through the remedy of damages and how restitution law allows benefactors to recover gains that their beneficiaries wrongfully obtained from them. The book makes three central claims: misalignments in tort law should be removed; in contract law, promisee's incentives should be improved; and the law should recognize some right of compensation for those who produce unrequested benefits. Each claim is based on the desire to reform private law and to make it more effective in promoting social welfare.

Personalized Legal Areas

2021 ◽  
pp. 61-84
Author(s):  
Omri Ben-Shahar ◽  
Ariel Porat
Keyword(s):  
Criminal Law ◽  
Common Law ◽  
Tort Law ◽  
Contract Law ◽  
Standards Of Care ◽  
Criminal Sanctions ◽  
The Common ◽  
The Law

This chapter illustrates personalized law “in action” by examining it in three areas of the law: standards of care under the common law tort doctrine of negligence, mandated consumer protections in contract law, and criminal sanctions. In each area, the chapter examines personalization of commands along several dimensions. In tort law, standards of care could vary according to each injurer’s riskiness and skill, to reduce the costs of accidents. In contract law, mandatory protections could vary according to the value they provide each consumer and differential cost they impose on firms, to allocate protections where, and only where, they are justified. And in criminal law, sanctions would be set based on what it takes to deter criminals, accounting for how perpetrators differ in their motives and likelihood of being apprehended, with the potential to reduce unnecessary harsh penalties.

Economics of Remedies

2017 ◽  
pp. 307-334 ◽  
Author(s):  
Ariel Porat
Keyword(s):  
Social Welfare ◽  
Tort Law ◽  
Contract Law ◽  
Social Costs ◽  
Legal Context ◽  
The Common

Remedies in different legal fields have much in common, and the study of remedies can teach us a lot, especially when the goals of the substantive legal fields are similar. Consider tort law and contract law. Under its efficiency rationale, tort law should minimize social costs, thereby enhancing social welfare. In order to achieve this goal, tort law should provide incentives for both the injurer and the victim to take efficient precautions. Similarly, contract law should also provide the parties with efficient incentives, in order to enable them to maximize the contractual surplus. In both torts and contracts, providing the injurer/promisor and the victim/promisee with efficient incentives is done through a combination of substantive and remedial law. Thus, both legal fields share much in common and often are adapted to the legal context to which they apply. The chapter emphasizes the common denominators of the remedies in torts and contracts.

scholarly journals Note historique sur les effets externes

2009 ◽  
Vol 51 (3) ◽  
pp. 420-433 ◽  
Author(s):  
Jean-Jacques Laffont
Keyword(s):  
Game Theory ◽  
Economic Theory ◽  
The Other ◽  
Historical Note ◽  
Second Best ◽  
Economic Agents ◽  
Pecuniary Externalities ◽  
Artificial Markets ◽  
Technological Externalities ◽  
The Creation

Abstract This historical note describes from Sidgwick on the evolution of the concepts related to the interdependencies of economic agents outside markets. In a first section, we show how the concept of externality introduced by some precursors had later to reemerge from the confuse discussion of "empty boxes". The second sector clarifies the distinction between two avenues of research, the first one associated with pecuniary externalities, the other one associated with technological externalities. Coase's criticisms of Pigouvian policy are developed in section 3. In a last section we gather the main results obtained recently by economic theory in this field. In particular we discuss the difficulties of the creation of artificial markets, the second best approaches often needed in a Pigouvian policy, results of game theory in models with externalities, planning with externalities.

Sign in / Sign up

Export Citation Format

Share Document