Wednesday, December 22, 2010
The Lack of Coincidence of Wants
The student begins explaining the problem of the lack of coincidence of wants. If both potential parties to an exchange do not value the good they would receive in exchange more highly than what they trade away, an exchange will not take place. Therefore, in a barter economy, it is difficult to facilitate many transactions. "For example," the student says, "If I'd want to hear an economics lecture, but all I had was a Britney Spears CD, I would not be able to make a trade with Dr. Ritenour."