Sunday, July 19, 2015

Gold Star to Randy Waldman

Interfluidity: Downward price stickiness is a coordination problem, plain and simple. It has nothing whatsoever to do with illusions or cognitive biases or failing to spit after staring too intensely at a small child. Economic entities, both firms and humans, have liability structures rigid in nominal terms. A business has made forward-looking contracts — leases of facilities and equipment, price-stabilized arrangements to acquire raw materials, and yes, contracts with employers that cannot be altered without renegotiation. Businesses have also financed themselves in part with debt, and so taken on nominal obligations whose sustainability is based on forward-looking nominal prices of the goods and services they will sell.

Does the firm want two checkout counters queued up for one customer or two customers queued up for one checkout counter?

It wants the latter. Why? Because its value added is sorting the goods for sale, the customers do not do that. And that sorting process is done on the company nickel before it opens the doors, it is taking a risk by estimating the customer queue. The firm wants a queuing cushion to cover the risk.  The turnover ratio for checkout counters is low, this is straight out of queueing theory.  Hence, the opportunity to adjust their cost is less, fewer transactions.

The theory of everything. Checkout counters/customer is has a boson second derivative, customers/checkout has a fermion second derivative.  How does this affect prices?
Firms have complementary statistics (dual?) so that equipartition is maintained and all the school girls are mostly in unique sets. Peter Keevash, where are you? Dannica, get on this.  It is a decoding and encoding problem, the firm needs prices that decode the customer, the customer is encoding the array of goods.  Matilde, get on this!


Banker bot works both sides, with honest distributions. The bot can be either server or client as necessary. Bith protocols are bundled into one state machine and we get card to card exchanges, perfectly secure.  Hence, when the customer goes 'Tap shopping', the queue risk between customer and firm is always optimal, equipartition always maintained.  This means economic change are adiabatic, it happens within the precision of prices. No more recessions, banker bot detects imbalances and adjusts the code and encode graphs to rebalance.

We have to get our bot and smart cards soon. We will get hardware security on the card, guaranteed as the bot pays patent fees for hardware security. So Cal Tech alumni, or Yahoo need only fund the selected team, the team I selected. That is the business model, it is based on the fact that I nailed this and I know who does TOE. Yahoo, do not be nice, just send out the kidnapping agents, grab these folks up, quick, before the Cal Tech Alumni get a clue.

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