Ronald H. Coase: 2 ideas worth knowing

2 ideas from Ronald H. Coase, each explained in a minute and credited to the original work. Free on Savvy.

Who legally owns the right barely matters if bargaining is free
Ronald Coase argued that when a factory's pollution harms a neighbor, the law doesn't need to pick a side: if both parties can bargain cheaply, they'll strike a deal reaching the e…
— Ronald H. Coase, The Problem of Social Cost
If markets are so efficient, why do companies exist at all?
In 1937, 27-year-old Ronald Coase asked a question economists had oddly overlooked: if free markets coordinate production so well, why don't we all just freelance and contract for …
— Ronald H. Coase, The Nature of the Firm

Five ideas worth knowing, every week