# The Bargain

## Definition

A voluntary bilateral exchange in which each party offers something the other
wants. Smith defines the bargain as the fundamental unit of economic
interaction: "Give me that which I want, and you shall have this which you
want." It is through bargaining that individuals obtain "the far greater part
of those good offices which we stand in need of" in civilised society, as
opposed to relying on benevolence or coercion.

## Source Chapter

Book I, Chapter 2: "Of the Principle which gives Occasion to the Division
of Labour"

## Context

The bargain is presented as the practical expression of the propensity to
exchange. Smith argues that it is the dominant mode of economic interaction,
used even by beggars who exchange charity-received goods for things they
actually need.

## Economic Domain

Exchange

## Smith's Original Wording

"Whoever offers to another a bargain of any kind, proposes to do this. Give
me that which I want, and you shall have this which you want, is the meaning
of every such offer."