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RE: Orconomist Issue 2 - Pareto & The Whale - Surviving The Dumpening
DO YOU HAVE YOUR OWN THOUGHTS ON HOW BEST TO HANDLE IT?
Let the market take care of it? :)
DO YOU HAVE YOUR OWN THOUGHTS ON HOW BEST TO HANDLE IT?
Let the market take care of it? :)
Care to elaborate?
Cg
Pretty simple really: Economic actors do what they want to do, the market responds, the economic actors adjust their behavior accordingly.
For example, a whale dumps, price goes down, whale stops dumping due to diminishing returns, buyers buy more due to market opportunity, etc... Market self-adjustment takes cares of short-term anomalies.
OK, fair enough; a kind of organic movement; I can dig that. I guess the whale stopping due to diminishing returns is what it relies on, so I'll drink to that! :-)
Cg