An Analytical Framework of Producer-consumers, Economies of Specialization and Transaction Costs
2017-06-06T01:02:40Z (GMT) by
In this paper, an analytical framework of producer-consumers is presented. It is proved that a producer-consumer does not buy and sell the same good, does not buy and self-provided the same good, and sells one good at most if there exist economies of specialization and transaction costs. Based on this, a lot of classical economic thoughts can be resurrected and many interesting results can be obtained from this kind of analytical framework.