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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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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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