True or False:
Trade between two parties must benefit both parties equally; otherwise, trade is not mutually beneficial.
value is subjective. hence we cannot know how much it benefits anyone. you make a trade that you think will benefit you, not something that actually does
False. They need only obtain some marginal benefit, there is no way to objectively determine if the satisfaction of both parties is “equal”.
No trade would obtain were there equal exchange of values. Each party must anticipate to gain and this implies reverse valuation of what they are gaining from their counterparty in trade.