Robert Coase

Robert Coase was a British economist best known for his work on the relationship between economic efficiency and legal frameworks, particularly through his famous "Coase Theorem." This theorem posits that if property rights are clearly defined and transaction costs are low, parties can negotiate solutions to externalities (like pollution) without government intervention, leading to efficient outcomes. His ideas challenged traditional views on regulation and highlighted the importance of bargaining in economics. Coase’s insights have greatly influenced fields like law and economics, shaping discussions on issues ranging from environmental policy to corporate regulation.