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Ronald Coase was one of the 20th century's most influential economists who developed our understanding of the transaction costs that occur when people exchange goods and services with others. Find out more EssentialCoase.org | Institute of Public Affairs
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Ronald Coase's most important contribution to economics is his work on the role played by transaction costs, legal rules and property rights in allowing or impeding the negotiating and bargaining that individuals do with one another, particularly when trying to resolve conflicts. As Coase explained in his famous paper The Problem of Social Cost, when transaction costs are high, and property rights are not well defined, then people are prevented from easily resolving conflicts and using resources
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