Ronald Coase: Impact Of The Nobel Lecture

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Ronald Coase: Impact of the Nobel Lecture History demonstrates that our world has developed immensely since the hunters and gatherers whom fought for survival. The discovery of farming allowed different groups of hunters to interact and, therefore, create entire villages or colonies. As time passed, societies formed and decision problems became more frequent because of new social complexities. This created a need for stability and direction. Economic institutions help solve this dilemma by bringing structure to economic life. One man in particular gave great insight to the importance of institutions. Ronald H. Coase wrote two articles and delivered a lecture to the memory of Alfred Nobel, all of which were an aid in understanding economic institutions. Ronald H. Coase received the Nobel Prize in 1991 for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy.[1] Throughout sixty years of writing only two articles had great impact on economics. The first article of significance was, “The Nature of the Firm”, in which he mainly addressed why firms exist. Coase was recognized for his definition and it became widely accepted and was credited for giving rise to new research on the subject. His second article of importance was called “The Problem of Social Cost”. This article was given credit for creating the field now called law and economics. In Coase’s Nobel Lecture, he discusses his contributions to economics in detail and why his two articles allowed new aspects to arise. Coase’s tone throughout the Nobel Lecture is continuously modest as he admires and credits those economists who have had greater contributions than he: In my long life I have known some great economists but I have never counted myself among their

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