Years later the late economist Ronald Coase, winner of the 1991 Nobel prize for economics,
refined Pigou's idea.
In 1937, the Nobel Prize-winning economist, Ronald Coase, explained this strange behavior by introducing the now-familiar
idea of“transaction costs.”.
Further, the Coase Theorem asserts that if conflict arises over property
rights under these assumptions, then parties will tend to settle on the efficient set of inputs and output.