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Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.


Concept that the best economic efficiency occurs with unfettered allocation and open trade in property rights. It proposes that the essential point is ownership of everything by someone and that who owns what is inconsequential … at first. Based on two main ideas, those being freedom of individual choice and zero transaction costs in expenses associated with the procedure of buying and selling, this concept helps explain the unprecedented cost advantage online firms have in the digital marketplace over the traditional firms. Online transaction costs are approaching zero. It has several other applications, such as in identifying who pays for pollution costs. Proposed by the US-based Nobel laureate economist, Ronald H. Coase (1910-?), in his 1960 paper ‘The Problem Of Social Cost.’

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