The Utility Function of Law and Economics: Introspection and Reconstruction Approach
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| Title | The Utility Function of Law and Economics: Introspection and Reconstruction Approach
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| Author | Li Suwen |
| Organization | School of Economic and Management,Chongqing Three Gorges University,Chongqing |
| Email | lsw09@163.com |
| Key Words | Law and Economics; the Utility Function; Fairness; Efficiency; Behavioral Economics |
| Abstract | In the utility function of the mainstream Law and Economics represented by Posner, efficiency can substitute for fairness and justice as the only independent variable. This utility function is basically accepted by our Chinese scholars engaged in Law and Economics. The utility function of camera choices to fairness and efficiency formulated by Qu Zhentao in China was not successful. Kaplow and Shavell advocate welfare alternatives to efficiency to formulate the utility function of Law and Economics. Malloy further probes the problem of what decides efficiency and welfare, which leading to the formulation of the composite utility function of Law and Economics based on semeiology. This paper approves of Malloy’s idea, but holds that formulating the composite utility function of Law and Economics based on fairness preferences theory of Behavioral Economics is even more logic, according to the development of academic disciplines, because Law and Economics is an interdisciplinary subject combining Economics with Law. |
| Serial Number | WP188 |
| Time | 2012-02-14 |
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