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--- explicit_trade [2018/11/19 11:27] – [Implicit trade] freeworlder
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-====== Explicit trade ======
-Explicit trade can be defined as our most common form of trading, that is: __like-for-like value exchange in an exclusive one-to-one arrangement.__ For example, Peter swaps a bag of tomatoes for Jeremy's violin lesson. In other words, they agree an equivalent value exchange and no-one else is involved.
-While there's nothing wrong with this in theory, in practice it is not always easy for both parties to have something of commensurate value to complete a transaction – whether goods, services or money. Therefore explicit trade usually results in either an exchange not taking place, or one party to the transaction having to engage in some activity to meet the value requirement that they otherwise would not engage in. (eg. working long hours in an unfulfilling job to pay off a debt)
-An open access economy would not preclude the notion of explicit trade taking place. In fact, it is a  perfectly satisfactory way for two people to obtain things that they would like to have. However, when it comes to life's basic necessities like food, water, a home, clothing etc, no-one should be denied access due to inability to meet some value requirement.
-===== Implicit trade =====
-Implicit trade can be defined as a debt implied through a large act of generosity. For example, if someone comes to help you fix your car in the middle of nowhere on a rainy night, you might feel an implied indebtedness towards that person, or perhaps their community, but of no agreed value. It could be best informally described as the feeling of 'I owe you one'.
-All things being equal, most people will try and recompense an implied debt despite the fact that there is no obligation to do so. The OAE theory holds that communities can successfully operate through a circular, implicit debt program, which means that this implied urge to pay back to the community at least equals favours received.