The Problem of Social Cost (Coase)

Details

Photo

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Name

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Field

Law and economics

Year

1960

Core idea in one line

When transaction costs are low, private bargaining can solve externalities better than sweeping rules — but those costs are the whole plot.

My take

Makes you see every noisy bar under an apartment and every delivery truck double-parked in Midtown as a negotiation problem, not just “bad behavior.”

Good starting point for

Understanding why zoning fights and congestion pricing are so emotionally charged.