Cyclopedia Of Economics 1st edition


II. Trust in other players



Download 4.1 Mb.
Page331/386
Date20.01.2021
Size4.1 Mb.
1   ...   327   328   329   330   331   332   333   334   ...   386
II. Trust in other players

Market players assume that other players are (generally) rational, that they have intentions, that they intend to maximize their benefits and that they are likely to act on their intentions in a legal (or rule-based), rational manner.



III. Trust in market liquidity

Market players assume that other players possess or have access to the liquid means they need in order to act on their intentions and obligations. They know, from personal experience, that idle capital tends to dwindle and that the only way to, perhaps, maintain or increase it is to transact with others, directly or through intermediaries, such as banks.






Share with your friends:
1   ...   327   328   329   330   331   332   333   334   ...   386




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page