The most distinguished economic analyst of law is 1991 Nobel Prize winner Ronald Coase, whose first main article, The Nature of the Firm , argued that the explanation for the existence of corporations (companies, partnerships, and so on.) is the existence of transaction costs. Rational people trade by way of bilateral contracts on open markets till the costs of transactions imply that utilizing corporations to produce issues is cheaper. His second major article, The Problem of Social Cost , argued that if we lived in a world without transaction prices, people would discount with one another to create the identical allocation of sources, whatever the way a court might rule in property disputes. Coase used the instance of a nuisance case named Sturges v Bridgman, the place a loud sweetmaker and a quiet physician were neighbours and went to court to see who should have to move. So the law …