how is the coase theorem applied legally 
the coase theorem has been to analyze and resolve disputes involving contract law and tort law in contract law it is used as a method to evaluate parties power during the negotiation and acceptance of a contract in tort law it is used in application of economic analysis to assign liability the bottom linethe coase theorem is a legal and economic theory regarding property rights it states that where there are complete competitive markets with no transaction costs and an efficient set of inputs and outputs an optimal decision will be selected it was developed by economist ronald coase 