33 lines
1 KiB
Markdown
33 lines
1 KiB
Markdown
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# The Bargain
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## Definition
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A voluntary bilateral exchange in which each party offers something the other
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wants. Smith defines the bargain as the fundamental unit of economic
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interaction: "Give me that which I want, and you shall have this which you
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want." It is through bargaining that individuals obtain "the far greater part
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of those good offices which we stand in need of" in civilised society, as
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opposed to relying on benevolence or coercion.
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## Source Chapter
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Book I, Chapter 2: "Of the Principle which gives Occasion to the Division
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of Labour"
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## Context
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The bargain is presented as the practical expression of the propensity to
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exchange. Smith argues that it is the dominant mode of economic interaction,
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used even by beggars who exchange charity-received goods for things they
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actually need.
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## Economic Domain
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Exchange
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## Smith's Original Wording
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"Whoever offers to another a bargain of any kind, proposes to do this. Give
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me that which I want, and you shall have this which you want, is the meaning
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of every such offer."
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