Mutualism is an economic theory that suggests it is beneficial for people to work together. Mutualism suggests that when people work together, they can create more value for themselves than if each of them worked alone. So for example, if two people both make cakes and then decide to trade a cake each, they can both end up with two cakes and more value than if they had just made one cake each. Mutualism encourages cooperation among people because it helps everyone get more of what they need.