Part 3/6:
Some proponents of economic theory point to the Coase Theorem, conceived by economist Ronald Coase. The theorem posits that if certain conditions are met, parties involved in a dispute can engage in bargaining to achieve an efficient outcome without the need for legal intervention. It suggests that Bill could potentially compensate his neighbors for the inconvenience caused by his restaurant, or conversely, the neighbors might offer to pay Bill to relocate. Regardless of the arrangement, the theorem implies that as long as the outcome is more efficient and hassle-free than enduring a lawsuit, both parties stand to benefit.