economic exchange

is the understanding that if an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it.

The key insight of Adam Smith's Wealth of Nations is misleadingly simple: if an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it. Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another. Milton Friedman

economic exchange, n.All

economic exchange