timelets: (Default)
timelets ([personal profile] timelets) wrote2016-11-06 09:06 am
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A pullback: two different notions of the market


Market pullback ex ante ex post

C - a coproduct of buyers, selles, bystanders, cops, dogs and all other creatures who showed up;
A - buyers who bought at least one product;
B - sellers who sold at least one product;

A -> C <- B

D = A xc B - a cartesian product of successful buyers and sellers.

This diagram illustrates two different notions of the market: before and after. Probably, I need to rearrange it so that the time conventionally flows right.