Unpublished Paper
Layered Circuits in the Economy
(2022)
Abstract
Classical economics recognizes only two relations among firms, independence, or collusion. Collusion is the absence of competition. It enables colluding firms to share a monopoly profit. These alternatives distort the view of an actual economy that has many types of relations among commercial enterprises. A layered structure offers a more accurate picture of an economy. Structures often involve short term renewable arrangements.
Every structure has a purpose. Scholars learn about them by studying them. They do not invent structures. That is the job of innovators, bold, timid, or lucky. While trial and error is a common approach, it does not explain great success. Those with deeper understanding of the implications of the computer age get the bigger rewards. Three examples stand out: search engines, the cell phone, and logistics for online retailing. The computer age had its main effects on the economy by lowering the cost of communication.
This essay uses circuits, a mathematical concept, to study the variety of structures in the actual economy.
Keywords
- circuits,
- renewable commercial arrangements,
- Monetary Circuits
Disciplines
Publication Date
Spring April 17, 2022
Citation Information
Lester G Telser. "Layered Circuits in the Economy" (2022) Available at: http://works.bepress.com/lester_telser/148/