Law In Motion Emory University School Of Law
The most prominent economic analyst of law is 1991 Nobel Prize winner Ronald Coase, whose first major article, The Nature of the Firm , argued that the reason for the existence of firms (companies, partnerships, etc.) is the existence of transaction prices. Rational people commerce through bilateral contracts on open markets until the costs of transactions imply that utilizing corporations to supply things is less expensive. His second main article, The Problem of Social Cost , argued that if we lived in a world without transaction costs, individuals would cut price with each other to create the identical allocation of…