Business, Legal & Accounting Glossary
Proposition: Voluntary trade is mutually beneficial.
“Voluntary exchange benefits all parties involved. An alternative, a mistaken view might be called ‘the exploitation theory’ — the idea that what one side gains in exchange is a loss to the other side.”
This holds as long as we assume that economic actors will not enter into a voluntary exchange that does not serve some self-interest.
The degree to which these conjectures are similar, or different, is a function of priors not addressed by the Theorem.
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This glossary post was last updated: 4th August, 2021 | 0 Views.