May

26

 The more one thinks about it, the more one believes that the constructal principle  the principle of least effort, the law of uniform stress, and Lobogola's principle are all manifestations of a general tendency to minimize the wasted energy in a market system. How would you improve on that formulation, and relate it to specific examples, and test it's predictive properties?

Hernan Avella writes: 

One can add that markets minimize wasted energy by always facilitating the efficient transfer from the weak to the strong. This transfer has to run at maximum capacity for the system to flow. Whenever the weak "gets lucky"(Internet, Housing, Gold), flow is inefficient and lobagolas are needed to restore order.
 


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