In this research, George Stigler introduced the term "the Coase theorem" to describe a concept put forth by Ronald Coase regarding dealing with externalities through negotiation. The term was not entirely accurate, as the idea wasn't exactly a theorem, and Coase's main focus was on transaction costs rather than the specific solution. Despite initial skepticism, Stigler later embraced the concept and highlighted it in his work. Stigler's presentation of the "Coase theorem" in his Theory of Price was example-based and lacked detailed analysis. The study explores the real meaning and implications of Stigler's interpretation of the Coase theorem.