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Here's the EconLib page for reference. In the third paragraph, it says

Menger used his “subjective theory of value” to arrive at one of the most powerful insights in economics: both sides gain from exchange. People will exchange something they value less for something they value more. Because both trading partners do this, both gain.

I thought the idea of mutual gains from trade come from Adam Smith! Was I wrong all along?

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The concept of gains from trade did already existed in Smith. Blinder mentions that in the EconLib as well. You can also directly read it in the Wealth of Nations by Smith:

It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy.. . . If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.

Either the author made a mistake or author refers to the fact that Menger provided rigorous positive explanation for the phenomenon.

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