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Intermediation Meaning: Definition 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

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.

Origin of 'intermediation'

Main points about word origin

  • 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.

The term 'intermediation' originates from the Latin word 'intermedius', which means 'being in the middle'. The prefix 'inter-' signifies 'between', while 'medius' refers to 'middle'. The word began appearing in English in the late 19th century, primarily in business and finance contexts, to describe the actions of brokers and agents acting as intermediates in transactions. As economies expanded and the complexity of transactions increased, the concept of intermediation gained prominence, leading to its widespread use in various fields, including finance, commerce, and communication. The practice of intermediation has been essential in creating efficient markets by enabling information flow and resource allocation.

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.