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 one another to create the identical allocation of resources, whatever the way a courtroom may rule in property disputes. Coase used the instance of a nuisance case named Sturges v Bridgman, where a loud sweetmaker and a quiet doctor were neighbours and went to court to see who should have to move. Coase said that no matter whether or not the choose dominated that the sweetmaker needed to cease using his equipment, or that…
