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Intermediation: meaning, definitions and examples

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intermediation

 

[ˌɪntərˈmidiˌeɪʃən ]

Definition

Context #1 | Noun

business transactions

Intermediation refers to the process by which intermediaries facilitate transactions between parties, typically in a business context. This can involve brokers, agents, or any other entities that act as a middleman. The goal of intermediation is to simplify exchanges and provide more efficient access to services or products.

Synonyms

brokerage, facilitation, intervention, mediation.

Examples of usage

  • The intermediation of the real estate agent helped us find our new home.
  • Financial intermediation is crucial for transferring funds from savers to borrowers.
  • The company specializes in intermediation between manufacturers and retailers.

Interesting Facts

Etymology

  • The word comes from the Latin 'intermedius', meaning 'in between', showing its role in connecting two sides.
  • It has been in use in English since the late 15th century, highlighting the importance of mediation across time.

Business and Economics

  • In finance, intermediation refers to services offered by banks and other financial institutions that connect savers with borrowers.
  • Real estate agents act as intermediaries, assisting buyers and sellers to complete property transactions smoothly.

Technology

  • In digital platforms, intermediaries are companies like eBay and Airbnb, which connect buyers and sellers in a marketplace.
  • The rise of online platforms has transformed traditional forms of intermediation, offering new ways to connect people globally.

Psychology

  • Intermediation can also happen in conflict resolution, where a neutral party helps disputing sides come to an agreement.
  • It’s been shown that effective intermediaries improve communication and reduce potential misunderstandings between parties.

Literature

  • Many stories feature characters who act as intermediaries, bridging gaps between different cultures or conflicting factions.
  • Literary theorists often discuss the role of intermediators in narratives, deepening themes of connection and understanding.

Word Frequency Rank

Positioned at #23,945, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.