Some of Coase's most powerful insights came from answering simple questions. For example, why do businesses exist? As in, why do some people join together to create firms and businesses, instead of just working on their own? As Coase explained, firms exist to minimize the transaction costs that people incur when they exchange goods and services. Coase's insights into the nature of firms created entirely new fields of study in economics, business management and political science. Watch this video to learn more, and visit www.EssentialCoase.org.