Systems Economics Lexicon · Economic Agents and Relationships

Payer Intermediary

The intermediary subsidizing or paying the enterprise, enabling customer access.

StatusSupporting term
SectionEconomic Agents and Relationships

Understanding Payer Intermediary

Payer Intermediaries subsidize or pay the enterprise on the customer’s behalf, typically in exchange for a related product from the enterprise, thereby easing the customer’s access to the enterprise’s product; this specifically distinguishes their function from the pure networking role of an Agent Intermediary or the inventory-taking role of a With Inventory Intermediary. The two examples given are businesses that advertise in consumer media, paying the media producer so consumers can access content, and health insurers or employers that pay for medical services on behalf of the policyholder, mitigating the cost of care. This construct is what allows the model to represent insurance, subsidy, and third-party-payer structures without distorting the underlying customer relationship.

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