Ronald Coase is one of the pillars of the law and economics community and of the Law School, where he has been a Professor of Economics since 1964. Coase published an article entitled, "The Problem of Social Cost" in the Law School 's own Journal of Law and Economics in 1960. This article, widely considered to be the most cited article in both law and economics, first introduced the theory that bears his name - the Coase Theorem. The Coase Theorem can be simply stated: in a world where there are no transaction costs, an efficient outcome will occur regardless of the initial allocation of property rights. This revolutionary idea is simple in statement but extremely useful and complex in practice, and is contrary to much of the thinking that went before it. The Coase Theorem has been applied in such varied areas as pollution regulation, farming policy, bioethics, foreign relation, and voting rights. The Coase Theorem continues to be taught in both law and economics classrooms and to be studied and used by scholars in both fields. In 1991, Coase was awarded a Nobel Prize, in part for his work on the Coase Theorem.

It is a very rare treat for students at American law schools to experience a Nobel Prize winner on the faculty. We continue to enjoy Professor Coase's regular visits to the Law School. In 1992 the Law School established the Ronald Coase Lecture in Law and Economics in his honor.