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Yes when all the assumptions that hold in theory are in place, in reality I wonder. "Markets are never in equilibrium, thus don’t be fooled by prices, but cons
by branchless 10y ago
Yes when all the assumptions that hold in theory are in place, in reality I wonder.
"Markets are never in equilibrium, thus don’t be fooled by prices, but consider quantities: The short side exerts power."
http://www.globalresearch.ca/shifting-from-central-planning-to-a-decentralised-economy-do-we-need-central-banks/5568753 http://www.globalresearch.ca/shifting-from-central-planning-...
In this situation none of the tenants hold. Information is not perfect, it's not a free market as only certain channels can provide the IP, prices are fluid.
For the balancing of supply and demand supply would have to be finite. In a digital world it is in practice infinite.
None of this guff works in the real world. Time to put all our econ 101 books onto a big boat, push it out to sea with a burning torch.
- dragonwriter 10y agoI'm not disagreeing with that; I was pointing to what basic economic principle was at issue in the upthread claim. Clearly, the reality of digital goods markets underlines how distant reality is from ideal markets.