Professor Posin is to be congratulated on his recent article in this Review, "The Coase Theorem: If Pigs Could Fly," for creating a precise example that purports to disprove the Coase Theorem. Legal scholarship should strive more towards verifiable or falsifiable statements about the law. Of...

The Coase Theorem maintains that, absent transaction costs, the assignment of legal liability for external damage caused by a given product will not affect the levels of production of the damaging good (or of the damaged good). Over the past decade a sporadic debate has emerged in the law and...