Title:
SUSTAINABILITY THOUGHTS 151: AN OVERVIEW OF MARKET VARIABILITY BASED ON DOMINANT COMPONENT EQUALITY AND FREEDOM: WHAT IS THE STRUCTURE OF A TRUE PERFECT MARKET?

Authors:
Lucio Munoz , Canada

Abstract:
Markets are related to concepts like equality and freedom. Markets based on dominant component freedom are said to be perfect markets and markets based on dominant component equality are said to be imperfect markets. Perfect markets here assume dominant component equality neutrality; and imperfect markets in this context assume dominant component freedom neutrality. However, true perfect markets are associated with dominant component freedom and dominant component equality at the same time; and if one component is absent or assumed away or assumed irrelevant, then we have a true imperfect market. This means that true perfect and true imperfect market thinking is not the same as traditional perfect and imperfect market thinking as we know it as then a known perfect market may not be a true perfect market; and a true imperfect market can be even a perfect market if neutrality assumptions are at play. Hence there is need to state and generalize the meaning of true perfect markets to understand the nature of related imperfect markets and to make sense as to whether or not well-known perfect markets and imperfect markets are consistent with what is a true perfect market. And this raises the question how a market variability model based on dominant component equality and freedom looks like? What is the structure of a true perfect market? What is the structure of true imperfect markets? How can true market thinking be linked to the structure of two well-known markets, the Adam Smith’s traditional perfect market; and the Karl Marx’s red socialism market? The focus of this paper is to provide an overview of market variability based on dominant component equality and freedom to state the specific and the general structure of a true perfect market and of true imperfect markets; and linked this knowledge to the necessary and sufficient conditions for the existence of two well-known markets, the traditional perfect market and the red socialism market.