4 ms·
The only parties to a trade are the buyer and the seller. If both don't think they'll be better off doing the trade, it won't happen. No one else is materially
by BurningFrog 3y ago
The only parties to a trade are the buyer and the seller.
If both don't think they'll be better off doing the trade, it won't happen. No one else is materially affected.
You can think of this as how trade creates wealth!
- slv77 3y agoThis assumes that both parties are rational agents acting with full knowledge, no coercion and no externalities. The rational agent in economics is similar to the spherical cow in physics. Great for modeling but pretty useless to a cowboy.
- BurningFrog 3y agoI think you missed the word "think".