OPTIMALITY CONDITION OF PLACE OF INJURY RULE IN CROSS-BORDER INTERNET TORTS AND IMPLICATIONS FOR TURKEY

Place of injury rule is not always optimal. In this paper, we measure the optimality condition of place of injury rule under strict liability. We develop an extended new model that departs from the efficient condition of choice of law rule by O’Hara & Ribstein 2 . The first part of our model proposes the optimal amount of precaution in cross-border internet torts under strict liability. The second part of the model indicates the optimality condition of the place of injury rule. Our model shows that the choice of injury rule is not always optimal. However, Article 34/II of Turkish Act on Private International and Procedural Law accepts that the choice of injury rule is always optimal so that Article 34/II is inefficient and wealth destroying. In conclusion, we suggest that Article 34/II should not be a mandatory rule. It should grant discretion to judges in order to measure the optimality conditions of both place of injury rule and place of conduct rule in each case. Our model will guide judges to measure the optimality conditions of choice of law rules.