Economic Transaction

An Economic Transaction is an multi-agent economic act that is a transaction of owned assets.

• Context:
  • It can be associated to Economic Transaction Costs.
  • It can result in the recording of a Financial Journal Entry.
  • It can range from being a Debt-based Economic Transaction to being a Concluded Economic Transaction.
  • It can range from being a Currency-based Economic Transaction to being a Barter-based Economic Transaction.
  • It can be regulated by some Contract Law.
  • It can range from being a Local Economic Transaction being a International Economic Transaction.
  • …
• Example(s):
  • Buying/Selling a Food Item.
  • a Labor Transaction, such as of a Mechanical Turk HIT.
  • a Financial Asset Transaction, such as of a company stock.
  • a Real-Estate Transaction.
  • …
• Counter-Example(s):
  • a Sharing Event.
  • an Altruistic Giving Event.
  • a Database Transaction.
  • a Business Activity.
• See: Contract, Economic System, Economic Decision, Economic Externality.

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References

2013

• http://www.investopedia.com/terms/t/transaction.asp
  • 1. An agreement between a buyer and a seller to exchange goods, services or financial instruments.
  • 2. In accounting, the events that affect the finances of a business and must be recorded on the books. Transactions are recorded in what are known as "journal entries." Each entry describes a single transaction and states its date and amount.
  • …
  • 1. Here are some examples of activities you engage in that would be considered transactions:
    • Buying or selling a stock
    • Buying a cup of coffee
    • Selling your freelance services
    • Buying or selling a house
  • 2. An accounting transaction will be recorded differently if the company uses accrual accounting rather than cash accounting. Accrual accounting records transactions when revenues or expenses are realized or incurred, while cash accounting records transactions when the business actually spends or receives money.

1962

• (Friedman, 1962) ⇒ Milton Friedman. (1962). “Capitalism and Freedom.”
  • QUOTE: … The possibility of co-ordination through voluntary co-operation, rests on the elementary — yet frequently denied — proposition that both parties to an economic transaction benefit from it, provided the transaction is bi-laterally voluntary and informed.

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