Ronald Coase
contemporaryInstitutional Economics, Law and Economics1910 – 2013
Ronald Coase (1910–2013) was a British economist whose work on transaction costs and property rights became foundational to law and economics. His 1937 essay 'The Nature of the Firm' explained why firms exist, and his 1960 paper 'The Problem of Social Cost' introduced the Coase Theorem, arguing that in the absence of transaction costs, private bargaining can resolve externalities efficiently regardless of initial property rights. He was awarded the Nobel Memorial Prize in Economic Sciences in 1991.
Notable Achievements
1
Developed the Coase Theorem on property rights and externality bargaining
2
Introduced transaction costs as a central concept in economic theory
3
Explained the existence of the firm through the theory of internal organization ('The Nature of the Firm', 1937)
4
Founded the law and economics movement with 'The Problem of Social Cost' (1960)
5
Awarded the Nobel Memorial Prize in Economic Sciences (1991)