Thursday, September 24, 2020

The better growth model

The total system is three value chains. The length of the chain and the total market size are bound together, with uncertainty in self sampled systems. But it has stable points and economies of scale are met such that product containers can be standardized.  It solves the three relative prime problem.

And there is a maximum market size. There is a human comfort zone, we humans have a hidden Markov model.  The uncertainty in market size appears as folks getting on and off the distribution, 'fails to deliver', In physics it is known as kinetic energy. So, the economy will be super positions around the lower levels of the Markov 3-Tuples.  The model would be three adaptive binomials, alpha, beta and gamma; solutions to the optimum relative primes.

I think of Walmart. Customers, clerks, and owners; three queues.  Moments are matched.

Then superpositions and you economy model is a mosaic,made of mutually coherent binomials, like bunches of franchise Walmarts with auto stores and banks all arranged, at optimum, as a distribution without loops. Hidden markov 3-tuples.

We will find many of the familiar optimum ratios and all that, including price volatility where it is supposed to be..

The binomials normalize arrival rates for inventory and people.  They thus look mostly like independent arrivals, and that is optimum diagonalization, you might say.  They share of the arrivals for each depends on entropy, how close to balance is the thing.

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