Re: [Fis] Artificial Markets

HOW COULD WE CHARACTERIZE MARKETS FROM A FORMAL POINT OF VIEW?

A market is a process, not a place. The translation of money into goods and
the retranslation of goods into money is subject to the same statistical,
combinatoric patterns as any transformation of content-equivalent,
form-different logical statements.

The ideal cell and the ideal market have in common (from an autoregulation
point of view) as follows :

temporal directedness (left-right, sooner-later exist)

conceptually temporal infinite duration

many participants in many types and archetypes

structured interplays with recognisable sequences

many .if. relations, partly nested

matter transforms into relation

relation transfers into matter

there are many temporal cyclicities

there is an overall, main temporal cyclicity

The possession of money opens up many oral relations. There is an element
of optimisation in the process of determining, which alternative shall come
into reality. The evaluation of the alternatives consumes time. There must
be a sufficient number of ticks in the availability of the matter for this
matter to be included in the list of possible selections in that moment as
the actual selection shall take place. During the evaluation phase, no
selection will take place. Then, a system which over-deliberates (like
Balaam's ass) will die. There is a connection between length of
deliberation (freedom within the system), temporal persistence of the
choices and the differentiation of the choices. How many different kinds of
merchandise can appear in a market? In how many ticks of time shall this
specific state of affairs reappear?

This mechanical-logical perpetuum mobile describes a colony of Lemmings
that treat with each other. A good bookkeeping would be able to say of
which produce how much is present this moment. The actors are warehouses
and we discuss crystallisation made up of different materiel. The guy who
is richer, has more or more varied stuff in his possession or a probability
vector directed at those stuff which he could still buy. This is his money.
Either he has stuff or he has money. Money is a probability vector assigned
to a stuff and to an actor (place) describing the extent of attraction (
gravitation , force ). The actor has a limited amount of capital. So he is
a realised partition and a potential partition and both add up to the same
n, his momentary wealth.

One can work out this fine. Introducing properties of archetypes we have
the first concept of a tradable good (matter).

Hope this is good enough reading. I d be pleased to cooperate in a team.

Best

Karl
Received on Thu Nov 6 10:31:27 2003