@NamelessCommenter The initial price emerges for each agent from the proto-subjective value. The proto-value is derived from the memory of utils derived from attributes that fully characterize the object + assumed synergies (value of the sum is greater than parts)+ systematic randomness* risk aversion. The agent, essentially, learns the value with time. In a purely deterministic system, you would be correctly but with fuzziness and complexity... there is nothing illogical about the theory.
@NamelessCommenter Price emerges from the non-linear interaction of heterogeneous agents whom at every sub-period of infinitesimal length (try to) readjust their portfolio of risk adjusted goods/services to obtain the efficient frontier. The aggregate is the emergent phenomenon of these interacting agents. As the composition,expectations, relative tastes, risk aversion,habit persistence etc changes the price changes. Thus, the agents readjust their weighting in their portfolio
@NamelessCommenter Congratulations, you just disproved the existence of complex systems... oh wait they are ubiquitous. Price emerges from the co-evolution of interacting heterogeneous agents and the aggregate
@NamelessCommenter nice try, but you got the Austrian view wrong. If asked how subjective human values (psychology, as you put it) can be quantified, an Austrian would say "they can't be quantified". A price is merely a signal that conveys information, but it is not a reliable measure of value. If you were lost in the desert and found a store selling bottles of water for $2.00 you would happily pay it, even though you would normally consider $2.00 a rip-off. Is the value of the water $2.00?
i wish my university was this good. all my tutors are rubbish.
You good folks are a beacon of intellectual light in a very dark sea of illogical thought. Thank you very much.
@NamelessCommenter The initial price emerges for each agent from the proto-subjective value. The proto-value is derived from the memory of utils derived from attributes that fully characterize the object + assumed synergies (value of the sum is greater than parts)+ systematic randomness* risk aversion. The agent, essentially, learns the value with time. In a purely deterministic system, you would be correctly but with fuzziness and complexity... there is nothing illogical about the theory.
@NamelessCommenter
Price emerges from the non-linear interaction of heterogeneous agents whom at every sub-period of infinitesimal length (try to) readjust their portfolio of risk adjusted goods/services to obtain the efficient frontier. The aggregate is the emergent phenomenon of these interacting agents. As the composition,expectations, relative tastes, risk aversion,habit persistence etc changes the price changes. Thus, the agents readjust their weighting in their portfolio
@Shadyhunter04
Cool, how much is that in gold? I'd like to buy some.
Where can we sell those?
@NamelessCommenter
Congratulations, you just disproved the existence of complex systems... oh wait they are ubiquitous. Price emerges from the co-evolution of interacting heterogeneous agents and the aggregate
Amazing, these people actually call themselves economics !
I was just thinking the exact same thing. This is all sophistry (ie, total bullshit)
@NamelessCommenter nice try, but you got the Austrian view wrong. If asked how subjective human values (psychology, as you put it) can be quantified, an Austrian would say "they can't be quantified". A price is merely a signal that conveys information, but it is not a reliable measure of value. If you were lost in the desert and found a store selling bottles of water for $2.00 you would happily pay it, even though you would normally consider $2.00 a rip-off. Is the value of the water $2.00?
I would call this brand of subjective theory of value.... complex STV
about names:according to Mises "Capitalism" was coined by Marx :-)