Economics is fundamentally about exchange. If you have something that I value more than you do, there are potential gains from trade to be had. For example, if you have an apple and I am willing to pay $1 for that apple and you value the apple at 50 cents, then we can each be better off from trade. Economists typically believe that people will exhaust any potential gains from trade.
Transaction Costs, the Family, and Public Policy
Transaction Costs, the Family, and Public…
Transaction Costs, the Family, and Public Policy
Economics is fundamentally about exchange. If you have something that I value more than you do, there are potential gains from trade to be had. For example, if you have an apple and I am willing to pay $1 for that apple and you value the apple at 50 cents, then we can each be better off from trade. Economists typically believe that people will exhaust any potential gains from trade.