Frequently, critical discussions of the economic analysis of law identify this branch of economics with publications of the Chicago School. Its methodology as well as its use of oversimplified market models is shown to lead, at the extreme, to a pangloss view of efficiency. However, results will be different if economic analysis of law is based on general equilibrium as well as welfare theory (including theories of morality and of justice) and takes advantage of modern microeconomic approaches. Economic analysis of law may then give answers to questions in the focus of any theory or sociology of law – as, for example, Eders theory of procedural rationality. Thus, the explanatory power of economic theories of law ist not, a priori, inferior to competing approaches. This is demonstrated, too, with respect to examples taken from private, criminal, and constitutional law.