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lets assume bill opens a restaurant and it becomes very popular generating impressive profits unfortunately it also generates a fair bit of noise and the neighbors start complaining eventually the neighbors sue bill and in most jurisdictions a bureaucratic and also economic nightmare starts because one there are legal fees involved for a bill as well as the neighbors - it can take a very long time until the courts make a decision and set it in stone 3 everyone ends up wasting a lot of time wouldnt it be great if a better alternative existed sure and some people point to the Coase theorem developed by ronald coase and which states that bargaining between the parties will lead to an efficient outcome if certain conditions are met in our situation perhaps bill would pay the neighbors for the inconvenience or on the contrary the neighbors would pay bill to relocate no matter what the outcome is its all good as long as its more efficient and hassle-free than suing right in theory yes wi
