Middleman Theory

Middleman Theory suggests that in some economic or social exchanges, certain entities act as intermediaries—middlemen—between producers and consumers. These intermediaries facilitate transactions, often adding value through services like distribution, marketing, or information. While they can improve efficiency and access, critics argue middlemen sometimes increase costs or distort the direct relationship between producers and consumers. Essentially, the theory examines the role, benefits, and potential drawbacks of these intermediary agents within supply chains or social systems.