The most outstanding 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, and so on.) is the existence of transaction costs. Rational people trade via bilateral contracts on open markets till the costs of transactions mean that utilizing companies to produce things is less expensive. His second major article, The Problem of Social Cost , argued that if we lived in a world with out transaction costs, people would bargain with each other to create the same allocation of resources, whatever the method a court may rule in property disputes. Coase used the example of a nuisance case named Sturges v Bridgman, the place a noisy sweetmaker and a quiet physician had been neighbours and went to court docket to see who should have to move.