One of the side effects of this theorem was the development of the economic analysis of law.
One of the side effects of this theorem was the development of the economic analysis of law. First put forth in its namesake's essay The Problem of Social Cost, its most important contribution was to rewrite the theory of externalities. Also known as the Bully Theorem, it reinstates markets and privatization as optimal, even when providing an argument against unwanted government regulation. This theorem simply states that externalities will vanish once participants determine what can be done legally. FTP, identify this theorem named after the 1991 recipient of the Nobel Prize in Economics.
One of the side effects of this theorem was the development of the economic analysis of law.
{Coase} theorem