Multidimensional Economics lends itself to making solid models of markets.
This solid 4D model of the S&P 500 comes from the data in the previous post. Every yellow point in the green Value Space has a matching white point on the red Demand Plane.
Solid 4D models let users get a feel for their markets. Here, the four dimensions are 1) Market Cap, 2) Return on Assets (ROA), Price, and Quantity (Volume).
Generically, they are 1) Valued Feature 1, 2) Valued Feature 2, 3) Price and 4) Quantity.
#4D,#businessanalysis,#neweconomics,#multidimensional
Demand Is Not Hypothetical
Virtually all economics textbooks treat Demand hypothetically. They strike a line to show how prices would theoretically fall as quantities increase.
In the real world, market Demand manifests itself as a series of points, with quantities (here, of bomber models) on the horizontal axis, and prices (as bomber prices) on the vertical axis, as shown below. Note the limiting values for this market, shown in open circles. Collectively, what do these circles represent? (Answer in next post)
#demand #demandplanning #demandforecasting
Costs And Prices Both Move Down Over Time
In most markets outside of refining and mining, costs and prices move in the same direction – generally downward.
In the case of the Model T, this happened for nearly two decades. When prices exceed costs, we say the product is in Sustainable Disequilibrium. When costs rise to and exceed prices, producers end the product line (Source, Abernathy, Product Dilemma, 1978, ISBN ISBN-13: 978-0801820816)
#prices #costs #sustainable #sustainable #disequilibrium
What was once $300, Now Costs $9.55
Product deflations are the opposite of upward-sloping supply curves. They are nowhere more obvious than in the market for flat-screen televisions.
Here are the equivalent buying powers for televisions over time, beginning at $300 in 2000. (Source: https://lnkd.in/gk97rVM) Processes improve, and people learn.
#supply #prices #learningcurve
What About Learning?
If costs rise as quantities increase in mining and refining, creating what classic economists call upward-sloping curves (see the last post), how do costs behave in other industries?
Let’s look.
Solar manufacturing costs have consistently fallen over time. This phenomenon, known as Swanson’s Law, observes that “at present rates, costs go down 75% about every ten years (https://lnkd.in/gYHnMDz The consistent drop in costs reflects the learning or experience curve, which observes the amount of time people take to complete tasks falls over time. In other words, people get smarter about how to get tasks done; the more often they do those tasks. The learning curve is one of the great omissions in modern economics. Where else can we find such curves?
#prices #supply #learning #learningcurve
Where Are All The Upward-Sloping Supply Curves?
In every current economics textbook, authors envision upward-sloping supply curves, where suppliers’ prices go up with increasing quantities. I found an example of one here: (https://lnkd.in/ehA3aez), where the increasing costs from left to right by mine form such a curve.
Has anyone found such curves outside of mining and refining?
If so, please let me know.
Thanks,
#mining #refining #prices #supply #supplycurve
Multidimensional Economics
Multidimensional Economics lends itself to making solid models of markets.
This solid 4D model of the S&P 500 comes from the data in the previous post. Every yellow point in the green Value Space has a matching white point on the red Demand Plane.
Solid 4D models let users get a feel for their markets. Here, the four dimensions are 1) Market Cap, 2) Return on Assets (ROA), Price, and Quantity (Volume).
Generically, they are 1) Valued Feature 1, 2) Valued Feature 2, 3) Price and 4) Quantity.
#4D,#businessanalysis,#neweconomics,#multidimensional
US Patent 10,402,838
The USPTO just awarded my team and me at MEE Inc. (now Hypernomics, Inc.) US Patent 10,402,838 for Multivariable Regression Analysis.
This is the first software designed to decode 4D market systems. Time adds a 5th dimension.
#4D,#businessAnalysis
Interview: LA40 – “Life After 40” Market Place Mysteries, Episode 57 (Full Show)
This week on the talk show LA40 – “Market Place Mysteries”
As a consumer, have you ever wondered if the product you are buying is worth what you are paying for it? Or perhaps as a supplier, do you question if you’re offering your product at the right price? With new technology that is lifting the secret veil of value – which has always been in site – CEO & Founder Doug Howarth of the company Multidimentional Economic Evaluators, Inc. is showing us how to taking the mystery out of the market place. Join Doug and LA40 talkshow host Katerina Cozias as they get down and dirty about breaking the law of supply and demand and ushering in the new dawn for economic paradigms with the law of “value and supply”.
MEE Inc.’s CEO Doug Howarth Presents Seminar in Multidimensional Economics
Balancing Capabilities vs. Budgets for Weapons & Platforms
November 20, 2015, London, United Kingdom:
Doug Howarth will present Balancing Capabilities versus Budgets for Weapons and Platforms to the Royal Aeronautical Society (RAeS), in support of their Conference entitled, Delivering Capability: A Balance Between Weapon and Platform. This will be the fourth time that Doug has addressed this body. It will be held at Royal Aeronautical Society Headquarters, 4 Hamilton Place, London, W1J 7BQ, United Kingdom.