I tend to regard the Coase theorem as a stepping stone on the way to an analysis of an economy with positive transaction costs.

I'm no enthusiast for the Coase Theorem. I don't like it, but it's widely used.

What I have done is to show the importance for the working of the economic system of what may be termed the institutional structure of production.

There is no doubt that the recognition by economists of the importance of the role of the firm in the functioning of the economy will prompt them to investigate its activities more closely.

The pollution problem is always seen as someone who was doing something bad that has to be stopped. To me, pollution is doing something bad and good. People don't pollute because they like polluting. They do it because it's a cheaper way of producing something else.