The Efficiency of Strict Liability From the Perspective of Economic Analysis of Law

The economic approach to the tort law is one of the most successful examples of economic analysis of law. In this approach, unlike traditional approaches, the final goal is not to compensate the victim, but such as other areas in the economic analysis of law, economic efficiency (wealth maximization) is considered as the main justification for the rules. Economic analysts believe that by requiring individuals to internalize the external costs of activities, requiring taking efficient precautions, reducing the administrative costs and loss distribution among the members of the society, tort law can reduce the sum of the costs of accidents and thereby lead to economic efficiency.
In this research, the strict liability as one of the important principles of tort law has been evaluated with the economic approach and efficiency criterion. Our survey indicates that the strict liability has economic justification and in the events that have unilateral nature, the doer is stronger and richer and has more information and control over the risk, can lead to economic efficiency.