Wednesday, July 21, 2010

Trade Can Be A Non-Zero-Sum Game


I, like John Kay, think that reiterating what seems to be obvious to economists, has value, as it may not, and in this case it is not, at all obvious to non-economists. There are people, in some cases populations, who still think that engaging in commerce is a zero-sum game. One benefits only in the loss of the other. The benefit of one is due to tricking the other counterparty to accept a not good deal for him. In order to change this fundamental misconception, that still exists after centuries since it was proved wrong; I started this blog with an article on mercantilism. Today, John Kay on “It may be a Rembrandt to you, but markets can beg to differ” writes about the same subject providing examples where trade is not a zero sum game. It is a good read for everybody.