The Law of Value and Demand: Not Your Grandfather’s Economics
To reject one paradigm without simultaneously substituting another
is to reject science itself.
Thomas S. Kuhn
No rejection of science here. But we can dismiss an ineffective paradigm.
Paul Samuelson wrote that the law of supply and demand, the root paradigm of economics, meant that “the equilibrium price, i.e., the only price that can last…must be at this intersection point of supply and demand curves.” That model works for commodities such as gold, silver, or iron.
But what about jets and jet engines? They use iron. You’ll only gain deep insight into these markets by substituting economics with Hypernomics.
Its fundamental principle, The Law of Value and Demand, states that:
- Features define Value,
- Value determines Price,
- Price limits Quantity Sold, and
- Quantity Sold is a Feature.
You can study this new field in my upcoming book with Wiley, entitled Hypernomics: Using Hidden Dimensions to Solve Unseen Problems, in January 2024. In the meantime, have a look at my paper called “8D Cost Trades with Entanglement,” published in the April 2023 edition of the Journal of Cost Analysis and Parametrics,” to see how markets work.
