Exchange is a voluntary interaction between two individuals in
which both forfeit ownership of an object to the other, to the
benefit of both. A common misconception about exchange is that
it occurs when the value of the two objects being traded are
equal. However, were the values equal in the eyes of either
party, no exchange would take place, as they would be just as
well off without it. Thus, when an exchange takes place, both
parties gain from the transaction: they are better off with the
object they have attained than with the one given up. This is a
fundamental source of wealth, and illustrates the value of the
division of labor. Murray N. Rothbard imagines a state of
affairs where exchange is nonexistent to illustrate its
importance: - "If anyone wishes to grasp how much we owe to the
processes of exchange, let him consider what would happen in the
modern world if every man were suddenly prohibited from
exchanging anything with anyone else. Each person would be
forced to produce all of his own goods an