Study of the law of economics originates from the traditions, norms, and cultures about money matters. However, there is first-hand evidence to the contrary; human beings show instances of limited rationality, self-interest, and will-power.
This paper examines how by assessing human behavior and actions can help and improve the study and growth of law and economics. Further, it examines issues of interest in the economic analysis of the law with proposals on new ways and means of tackling them.
The study of law and economics is divided into three broad categories; positive, prescriptive, and normative.
Positive analysis deals with how people behave or act towards or in response to laws and how laws are made.
Prescriptive analysis deals with what laws to be embraced to achieve specific needs
Normative analysis analyses the end results of any laws which require conformity and respect to the people’s choices.
Being aware of the inherent weaknesses of both the people and the government, the analysis of social law and economics offers unique solutions as compared to the normal assessment.