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Compensation, punishment, and deterrence: a survey on the purpose of tort damages in the case of a defective car accident in Japan

Author

Listed:
  • Daisuke Mori

    (Kumamoto University)

  • Shuichi Takahashi

    (Miyagi University of Education)

  • Yasuhiro Ikeda

    (Kumamoto University)

Abstract

Under Japanese tort law, the main purpose of damages is the compensation of a victim. The punishment of the offender and determent of similar future conduct are considered only a subordinate effect and the purpose of criminal sanctions. The Japanese court even states that punitive damages that are imposed for punishment or deterrence are contrary to the fundamental principles of the Japanese legal system. However, do ordinary Japanese people support these ideas? In this study, we investigate how the legal system of damages is perceived by means of a survey. In response to a story about a car accident caused by design flaws, we asked respondents how much they think the manufacturer should pay the victim in damages, and inquire as to how much they consider certain factors, such as compensation and deterrence. We statistically analyzed the data and found that although most consider compensation when they estimate the appropriate amount of damages, many consider deterrence and punishment as well. We demonstrate that the more they consider deterrence and punishment, the larger the amount of estimated damages becomes. In addition, we find that variances in the amount of damages increases along with the extent to which they consider these factors.

Suggested Citation

  • Daisuke Mori & Shuichi Takahashi & Yasuhiro Ikeda, 2017. "Compensation, punishment, and deterrence: a survey on the purpose of tort damages in the case of a defective car accident in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 589-624, October.
    • Handle: RePEc:spr:apjors:v:1:y:2017:i:2:d:10.1007_s41685-017-0059-8
    DOI: 10.1007/s41685-017-0059-8
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    References listed on IDEAS

    as
    1. Ramseyer, J Mark & Nakazato, Minoru, 1989. "The Rational Litigant: Settlement Amounts and Verdict Rates in Japan," The Journal of Legal Studies, University of Chicago Press, vol. 18(2), pages 263-290, June.
    2. A. Mitchell Polinsky & Yeon-Koo Che, 1991. "Decoupling Liability: Optimal Incentives for Care and Litigation," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 562-570, Winter.
    3. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-465, May.
    4. Jeroen Weesie, 1998. "Regression analysis with multiplicative heteroscedasticity," Stata Technical Bulletin, StataCorp LP, vol. 7(42).
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    Cited by:

    1. Moriki Hosoe, 2017. "Special issue on economic analysis of law, politics, and regions," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 427-429, October.

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    More about this item

    Keywords

    Purpose of damages; Tort law in Japan; Survey experiment; Punitive damages; Decoupling liability;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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