Information about Markets
Often, it is the everyday beliefs, which are theoretically misleading. With markets, many think about a large square with many stalls, at which goods are held up and offered to the customers, who are pushing themselves through narrow streets. Then there are negotiations and purchases. However, this is not the way the global market works, in which large parts of the (economic) organisations operate, directly or indirectly.
What is not as easily noticed in this image is that markets are circular and not linear! Everybody observes and is observed! Thus, the present depends on a future, which depends on what the present expects of it: because the purchaser believes that the vendor has to sell his goods before they go off, he won’t buy for the price demanded and in doing so, sees to it that the goods are perishing, while the vendor believes that the customer will return tomorrow, if he does not buy today and, therefore, he does not reduce the price and in this way he sees to it that the customer will buy the goods tomorrow at the normal price. This very simplified example shows that for each person there can only be incomplete information available: every piece of information is incomplete, because a relevant part of the information, which the trading ‘actually’ requires, is first produced through trading!
The recursiveness (and not the linearity) of time determines the happenings. However, most economic models rest upon a linear time image (earlier – later, and easy to calculate!) and blurs the quality of time – something of the unknown future. Therefore, there are no formulae for the calculation of markets, but only the constant adjustment to that, which one creates with others in the way of a surprising future.