A ‘transaction’ is an act of debt between parties. The seller owes goods to the buyer (performance debt), and the buyer owes money to the seller (monetary debt). A transaction is considered complete when the debt is settled and the promise to owe each other is called a ‘contract.’ Thus, a good trader or businessman excels at making and repaying debts. When it comes to debt, the type of debt matters. Anyone who misjudges this should not engage in business. - Joseph’s “just my thoughts”
In 2002, Nobel Prize-winning economist Daniel Kahneman conducted an experiment called the “Dictator Game”. It was 1986. One of the two subjects was given $20 to share with the other. The first condition was that the recipient could exercise his veto power if he did not like the distribution ratio, and then, the ruler ensured that the giver did not have the money. The second condition eliminated the veto. In the first condition, most people who gave money were divided in half. In the second condition, however, the giver had about 70% and shared only 30%. Most people think of fairness to vested interests between 50% and 70%. But, in some cases, even though the recipient had a veto, the giver had 90% and wanted to share only 10%. At that time, it was beneficial for the recipient to receive at least 10%, but by exercising the veto power, the giver did not have the money either. This is the moment of conflict between justice and rationality. People do not make decisions based on reason alon...