The most distinguished financial analyst of law is 1991 Nobel Prize winner Ronald Coase, whose first major article, The Nature of the Firm , argued that the reason for the existence of corporations (companies, partnerships, etc.) is the existence of transaction prices. Rational individuals trade by way of bilateral contracts on open markets until the costs of transactions mean that using companies to produce issues is more cost-effective. His second main article, The Problem of Social Cost , argued that if we lived in a world with out transaction prices, people would cut price with each other to create the same allocation of resources, regardless of the way a court may rule in property disputes. Coase used the example of a nuisance case named Sturges v Bridgman, where a loud sweetmaker and a quiet physician have been neighbours and went to court to see who ought to have to maneuver.…