Coase, Ronald H.

Ronald H. Coase was an influential economist known for his work on how businesses and markets function. He introduced the idea that when there are conflicts over resources or external effects (like pollution), parties can often negotiate privately to reach efficient solutions without government intervention. His most famous concept, the "Coase Theorem," suggests that if transaction costs are low and property rights are clear, externalities can be effectively managed through bargaining. Coase's insights helped shape understanding of how legal rights and negotiations impact economic outcomes and resource allocation in the real world.