Transaction benefits

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Transaction benefits is a new concept first coined by Dr. Howard Long to refer to the non-monetary satisfaction gained from providing a good or service to another. In some cases the transaction benefit may exceed the monetary reward from the transaction, as in providing a good or service for free.

For example, a doctor finds satifaction of helping one's neighbor and the patient's acceptance of that love, and this satisfaction can exceed the value of the money paid for the care. Due to declining pay and increased regulations, some primary care physicians can find that transaction benefits rather than money are the primary motive for continuing to work.

In another example, a family restaurant can find transaction benefits in staying in business to serve a loyal clientele long beyond the profitability of that restaurant. The value of providing stability and collegiality to the community through numerous daily transactions can exceed the financial benefits.

Similarly, a community can find transaction benefits by supporting smaller shopkeepers and store owners in their towns, rather than commute to peripheral big-box stores such as Wal-Mart, as the value of keeping profits and business in the community has greater net benefits than the financial savings made by shopping at the big-box stores.

Transaction benefits can be contrasted with transaction costs, which increase with regulatory complexity.

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