Direct Exchange / Barter

Simplest and most straightforward way of exchanging value between individuals.

Problems of Coincidence of Wants

Coincidence in scales

One party has a good that cannot be divided into small enough pieces to exchange for the value of what the other party has to offer

Coincidence in time frames

I have a bunch of apples but I want something that is durable and long-lasting. My apples may rot before I can make the trade.

Coincidence of locations

The thing I want to exchange for is too far away to transport what I can offer (maybe I am offering to trade a heavy rock)

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  • money

    simplest method of transacting value is Direct Exchange / Barter. To get around the problems with barter you need_indirect exchange_. The intermediary is a medium of exchange.