4d Archives - Hypernomics

Structure Turns Up

Things don’t turn up in this world until somebody turns them up.
James A. Garfield

In the mid-1900s, there was a race to find the mechanism that passed on genetic instructions. The double helix structure of DNA that James Watson and Francis Crick discovered was a simpler solution than many biologists thought possible and caught many of them by surprise (A).

Imagine the surprise of many, then, when no one else thought to look, the law of supply and demand is supplanted by the Law of Value and Demand from Hypernomics, which, like DNA, is a long-standing structure which only turns up with lots of hard work and a little imagination. As shown in B, two market dimensions, Dividends and Earnings Per Share, describe a surface (P-Value 1.55E-06) that drove the Value of the Dow 30 stocks yesterday (stocks above it may be overpriced, those below it, undervalued). That Value determines Price, a third market dimension, which, in turn, limits the Quantity sold, a fourth market dimension.

The secret, such as it is, is that such structures occur in mathematical, not physical space. But they turn up in all markets since they began, just as our DNA has always been with us.

#marketDNA #technology #markets #innovation #hypernomics #4D

Image Info

Plotting in 4 Dimensions

You likely have seen readouts from GPS applications, where a device reveals its latitude and longitude. That is a 2D plot. Some GPS outputs also include an altitude reading. That’s a 3D plot.

In the green Value Space at left, below, the Range (analogous to longitude), MV (momentum, akin to latitude), and 2016 Price (similar to altitude) reveal 3D positions of 1 bomb (the BLU-111) and 2 missiles (the AGMs -158-1 and -84). The BLU-111 has a Range, MV, and 2016 Price of (28, 364,389, $32,000), while the ordered triples for AGMs -158-1 and -84 are (1000, 1,225,2000, $1.912M) and (270, 577,125, $528K), in that order.

The red Demand Plane, at right, describes positions as ordered pairs, with Quantities as the horizontal component, and 2016 Prices on the vertical axis, as (33,330, $32,000), (275, $1.912M), and (4,152, $528K) for BLU-11, AGM-158-1, AGM-84, respectively. The Demand Plane is a 2D plot.

As the 3D Value Space and 2D Demand Plane share the Price axis, the collectively form a 4D system, as displayed in the diagram and described in the table.

How do we display 5D systems? Read the next post for an explanation.

#marketanalysis #3Dsystems #4Dsystems

Image Info

Value, Demand, and 4D States

Last time we tackled Value as sustainable Prices based on product Features, shown in Value Space. There, 2 Valued Features, horizontal dimensions 1 & 2, drive Value, which determines Price, vertical dimension 3.

We earlier depicted Demand with a horizontal Quantity dimension 4 and the same Price dimension 3.

Last week we showed how the Antarctic claims of Argentina and Australia meet at the South Pole, their air spaces abutting the Earth’s axis. If we call the South Pole “0,” every point away from it is positive.

As Value Spaces and Demand Planes share a common Price Axis, they abut one another as do the Argentinian and Australian claims.

It follows Value and Demand form 4D systems, such as that for electric cars below. Every point in Value Space has a matching one on the Demand Plane. Look at the green lines running to the isolated point in Value Space, connecting to its opposing Demand Plane point.

The diagram shows the Law of Value and Demand:

Product Features determine Value
Value determines Price
Price determines Quantity sold
Quantity sold is a feature

Value and Demand form linked, dual states.

How do we handle more valued features? Please see the next post for the answer.

#prices#demand#4Dsystems#marketanalysis

Image Info

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