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LSDefine

Simple English definitions for legal terms

Coase Theorem

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A quick definition of Coase Theorem:

The Coase Theorem is an idea that says if there are no extra costs involved in making deals, then any rule about who gets what will work out well. This idea was made up by a man named Ronald Coase. He wrote a famous article called "The Problem of Social Cost" in 1960. The Coase Theorem is important because it helps us understand how laws and economics work together. It shows that sometimes, the law doesn't really matter because the market will always find a way to work things out.

A more thorough explanation:

The Coase Theorem is an economic idea that explains the relationship between legal rules and economic efficiency. It was developed by Ronald Coase and states that if there are no transaction costs, any legal rule will produce an efficient result.

For example, imagine two neighbors who live next to each other. One neighbor likes to play loud music at night, which disturbs the other neighbor's sleep. If there are no transaction costs, the two neighbors can negotiate and come up with a solution that works for both of them. The loud neighbor might agree to turn down the music, or the other neighbor might agree to wear earplugs. Either way, an efficient solution can be reached without the need for legal intervention.

The Coase Theorem is important because it shows that legal rules are not always necessary to resolve disputes. Instead, people can negotiate and come up with their own solutions if there are no transaction costs.

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21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
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