When transaction costs are low and parties involved are perfectly informed, a mutually beneficial agreement will occur: whoever values the property the highest will end up with it. This is what Ronald H. Coase proposed in his "Theory of Property Rights" in 1960. This theory holds true within the world of economics. In the American system of government, legislators have the incentive to logroll because transaction costs are low. When transaction costs are low, the Coase theorem says that the political marketplace (the decisions of the legislatures) will allocate resources to the highest valued point (Coase 1960).