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His second main article, The Problem of Social Cost , argued that if we lived in a world with out transaction prices, people would discount with one another to create the identical allocation of sources, whatever the way a courtroom may rule in property disputes. Coase used the example of a nuisance case named Sturges v Bridgman, where a loud sweetmaker and a quiet doctor were neighbours and went to court docket to see who ought to have to maneuver. Coase said that regardless of whether the judge ruled that the sweetmaker had to stop using his machinery, or that the physician needed to put up with it, they may strike a mutually helpful bargain about who strikes that reaches the same end result of resource distribution. So the law ought to pre-empt what would happen, and be guided by …