简介：Thirdpartylitigationfunding(TPLF)isoneofthemostinnovativetrendsinlitigationfundingindustry.InaTPLFcontract,anexternalinvestor(thethirdpartyfunder)financiallysupportsalitiganttocoverlitigationexpenses.Iftheclaimisfinallysuccessful,ashareofrecoverieswillcometothefunderinreturn.Ontheotherhand,thethirdpartyfunderwillreceivenocompensationiftheplaintifflosesthesuit.Uptillnow,insomecommonlawjurisdictions(e.g.,Australia,theUK,andtheU.S.),TPLFhasbeenlegallyacceptedanddevelopsrapidly.Meanwhile,concernsabouttheuseofTPLFhavealsobeenraised.Forexample,whetherTPLFwillencouragefrivoloussuitsandunmeritoriousclaims;andwhethertheuseofTPLFwillbesociallydesirable.Inthisarticle,abasiceconomicmodelofTPLFwillbebuiltfirstly.Then,analysisbasedonthismodelwillbedeliveredandfurthersocialexternalitiesbroughtbytheuseofTPLFwillalsobeinvestigated.Finally,throughaneconomicanalysis,itisconcludedthatTPLFisgenerallysocialdesirablebutregulationsshouldbeimposed.