Firstly, transactions costs incurred by the intermediator in his relations with other parties encourage him to organise production in a particular way.
The market-making intermediator establishes trading links which would not otherwise exist.
The purest form of market-making intermediator simply buys and resells the same product.
There are several organizations that can put database intermediators
in place, thereby giving your I/T people the ability to do your own systems integration.
Ghana's financial liberalisation since the mid-1880s 1980has fostered institutions that build on the successful methods of savings collectors and may eventually facilitate their role as intermediators
But in fact it seizes upon a narrow loophole in the Tower commission report to institutionalize a practice on which the board itself frowned: The report said that the use of outsiders might be helpful "in some unique cases' but warned that private intermediators
may obtain leverage "for return favors or even blackmail.
We were struggling at that time, and we were telling our customers and intermediators
and anyone who could sit down for the proverbial half-for in Monte Carlo.
Intermediators who have a comparative advantage in screening such assets will normally prefer to purchase them outright, whilst those who have a comparative disadvantage in screening may prefer to purchase the specific services of these assets instead.
Fee-charging intermediators, such as employment agencies, cannot be trusted to the same extent as normal intermediators because they do not directly bear the risks of their mistaken decisions.
For example, in pre-Nasser rural Egypt, with cotton as the main cash crop, tenants squeezed the landless workers (taraheel) below subsistence wages; landlords, in their turn, squeezed as much surplus as they could from tenants; landlords, seeking cash, made future cotton sales through financial intermediators
(mostly foreign), far below international market prices, and, finally, at the core centre, the latter group was squeezed by industrialists and traders in England.