In fact, the most leading and vast literature of economic analysis of law cannot be differentiated very easily. For the explanation of this topic, there are two main standards of thought within the economic analysis of law described. These two standards are known as the political economy and policy analysis.

Economic analysis of law is characterized as providing a complete theory of law. Indeed, economic analysis of law usually pre-suppose as a concept of law in that the law is uncontroversially known to all actors. These analyses assume that the law is known and also inspected its casual significances. The policy analysis strands of economic analysis of law often absolutely assume some variants of legal positivism as its considerate of the concept of law. Behavioral effect’s economic analysis of a legal rule particularly starts with the statement that the legal rules are not only clearly explained to the judges and other public official, but also known to those subject to the legal rules. This explanation of private citizens might determine simply to the understanding of what consequences pursue from each possible action that the agents might obtain. There are two major positions that are dominating the philosophical debates on the concept of law. One set of positions, sophisticated by legal positivists like the Raz and Coleman. They dispute that the expression of a concept of law is a work out in self-consideration and self-understanding. They follow their positions through the theoretical analysis of economic analysis of law. The second position is advanced by Perry, Dworkin and Murphy. They challenge that we can easily adopt the concept of law that best suits the advances of political aims.

There are different theories about the adjudication of law explained in political economy strands of economic analysis of law. In these theories of adjudication of law: adjudication in political economy is leading than the all others. The political economy strand looks only to enlighten legal trends rather than to set down neither the constitution of legal associations nor the content of specific legal rules. Next theory is about adjudication in the policy analysis. This theory was amongst the earlier claims of the economic analysis of laws.

The method or techniques of economic analysis of law pretenses a more momentous challenge to the conventional accounts of law. Economic analysis of law irritates foreboding because sculpt of self-interested maximization of penchants does not confess a concept of normativity. In fact, describing the normativity of law is a main pre-activity of the philosophy of laws. The logic of this assurance to self-interested maximization of preferences would emerge to escort to a refutation of the requirements for a distinctive concept of law in the estimation and explanation of social institutions.