Brokerage of "double coincidence of wants" and "indivisibility of goods", increasing liquidity (leading to uniform prices), and possibly decreasing number of markets:
# Money (broker of N products and services; N markets instead of N*(N-1))
# Banking (broker of loans and deposits - time market)
# Exchange (broker of participants - money without storage/time market function; futures and options as storage function?)
Joint-stock companies?
http://mises.org/rothbard/mes/chap3a.asp
http://www.econlib.org/library/YPDBooks/Jevons/jvnMME15.html
Force funding - a loop with a positive feedback:
More force obtains more funding, more funding obtains more force
By itself is detrimental (extortion), but can be a vehicle for public benefit.
Marketability/demand for a medium of exchange is another loop with a positive feedback.
# It either originates from a directly useful commodity
# Or via fiat/force
Can protection from force be encoded as tokens, which are "a directly useful commodity"? This would unify two origins of money.
For durable goods, each unit may be sold in toto, or it may be hired out for its services over a certain period of time.
People are both agents with utility preferences AND durable goods, either sold or hired out for their services.
Non-durable goods also perform services, but only once - during their consumption.
Prices of goods are induced by prices of their services.
Prices are determined by beliefs. All agents have limited rationality. Manipulation of beliefs of others may be profitable.
Utility. Elasticity. Substitutability. Complementability.
Tuesday, October 21, 2008
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