transactions are positive-sum: Nonlinear Function
Created: January 17, 2021
Modified: February 22, 2022

transactions are positive-sum

This page is from my personal notes, and has not been specifically reviewed for public consumption. It might be incomplete, wrong, outdated, or stupid. Caveat lector.

If you and I agree of our own volition to exchange X for Y, this implies that we both believe we are gaining value in the trade. If one of us weren't gaining value, at least in expectation, then we wouldn't do the trade.

This is a core principle of economics: trade is mutually beneficial.