Milliliðar

Milliliðar, or intermediaries, are entities that facilitate transactions between buyers and sellers without usually taking ownership of the goods or services. They help connect parties, offer information, reduce risk, and handle logistics, payments, and marketing.

They perform matchmaking, provide information, reduce risk, and handle logistics, payments, and marketing. In markets, common forms include brokers and agents, wholesalers and retailers, platforms, and financial intermediaries.

Their functions include reducing information asymmetry, aiding price discovery, coordinating supply chains, assuring quality, and processing contracts. They may earn commissions, fees, or margins while not owning the underlying inventory.

Economically, milliliðar increase market efficiency by expanding liquidity and enabling smaller participants to participate. They can also concentrate market power or create incentives misaligned if competition is weak.

Regulation and criticism: Licensing, disclosure, and antitrust enforcement are common tools; concerns include conflicts of interest and opaque pricing.

Examples include real estate brokers, travel agents, commodity brokers, online marketplaces, and banks offering financing.

See also: supply chain management, brokerage, agency.