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Comparing the efficiency of theories of fault and risk with a focus on welfare economics

Document Type : Research Paper

Authors

1 PhD in Private Law of Bu-Ali Sina University, Hamedan,Hamedan,Iran

2 Professor of Bu-Ali Sina University, Hmedan,Iran,Hamedan

Abstract

The complexity of social relations has increased the examples of tort law and made this area of law more important. In addition, it has been concluded in legal systems that creating a society free from hypothetical losses is ideal and unrealizable. Therefore, legislators use tort law as a tool to create balance in society and establish justice. The concept of justice can be very diverse. From the point of view of the economic analysis of law, it is considered an efficient situation where both the activity of people is at the highest level of profitability and the occurrence of losses is prevented as much as possible. In fact, economically efficient situation is a situation where a reasonable and cost-effective balance is established between activity and prevention. Several solutions have been proposed in the economics to establish such a balance, and in this research, after introducing each theory, the state of Iran's tort law system is examined. The result of this research, which is using analytical-descriptive method, shows that Iran's tort law system relies on prevention more than encouraging people to act, and the theories of risk and fault are not always used in their correct place.

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References
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Private Law Research
Volume 12, Issue 47
July 2025
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