In 1992, Ronald Coase was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to the understanding of the institutional structure of production. In his lecture, Coase discusses the importance of incorporating institutional factors into economic analysis, which he argues has been overlooked in traditional economic theory. He emphasizes that the functioning of the economic system depends on the institutional structure of production, including the role of firms, markets, and the costs associated with transactions. Coase highlights the limitations of traditional economic theory, which has focused primarily on price determination and has neglected the complexities of organizational structures and transaction costs. He argues that the inclusion of these factors is essential for a more complete understanding of economic systems. Coase also discusses the significance of his work in the context of the transition from centrally planned economies to market economies, emphasizing the need for appropriate institutional arrangements. He reflects on his early career, the development of his ideas, and the influence of other economists on his work. Coase also addresses the importance of empirical research in understanding economic systems and the role of legal institutions in shaping economic outcomes. He concludes by emphasizing the need for further research and the importance of considering the institutional structure of production in economic analysis.In 1992, Ronald Coase was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to the understanding of the institutional structure of production. In his lecture, Coase discusses the importance of incorporating institutional factors into economic analysis, which he argues has been overlooked in traditional economic theory. He emphasizes that the functioning of the economic system depends on the institutional structure of production, including the role of firms, markets, and the costs associated with transactions. Coase highlights the limitations of traditional economic theory, which has focused primarily on price determination and has neglected the complexities of organizational structures and transaction costs. He argues that the inclusion of these factors is essential for a more complete understanding of economic systems. Coase also discusses the significance of his work in the context of the transition from centrally planned economies to market economies, emphasizing the need for appropriate institutional arrangements. He reflects on his early career, the development of his ideas, and the influence of other economists on his work. Coase also addresses the importance of empirical research in understanding economic systems and the role of legal institutions in shaping economic outcomes. He concludes by emphasizing the need for further research and the importance of considering the institutional structure of production in economic analysis.