16 June 2010

Albion Market

The market is supposedly an abstract exchange mechanism.

The price of an item in a market is supposedly generated as if by magic by two variables - supply and demand.

High supply and low supply.
High demand and low demand.

Generally speaking the interaction of these four states supposedly generate the "market price."

Well at this point anyone with a brain will say "This is a pile of bullshit."

However I will continue.

Even if the preceding were true - and it is not, the price is still generated by humans.

The price is simply what someone pays for it.


.......

(TBC)..

I suppose "potential profitability" is another factor in "generating the price" - which is gambling.....er.......