Saturday, October 12, 2019

Hayekian triangle is a generator without the internals

This is a Hayek triangle
This is the same triangle filled in using modern math.

The triangle is a generator, when you feed it a random uniform sequence it generates the typical set of consumption goods. It is a structured queue, the break though was understanding Hayek triangle as a structured queue, quite computable from a complete sequence.




The generator is also the basic form used by market makers, like a pit boss organizing a mob of traders.  It is what we do in sandbox, which is evidently a pure Hayekian system, done right.  All these discoveries came about after Hayek.

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