Jurusan Hukum Fakultas Hukum Universitas Pelita Harapan Universitas Pelita Harapan

His second major article, The Problem of Social Cost , argued that if we lived in a world without transaction costs, people would bargain with one another to create the same allocation of resources, regardless of the way a court might rule in property disputes. Coase used the example of a nuisance case named Sturges v Bridgman, where a noisy sweetmaker and a quiet doctor were neighbours and went to court to see who should have to move. So the Law News ought to pre-empt what would happen, and be guided by the most efficient solution. The idea is that …