Friday, August 30, 2013

Halting Of The Competitive Process In Disequilibrium.

If in any one period the competitive process comes to a halt it does not mean a failure of the process. Disequilibrium – the real world condition – is characterized by widespread ignorance, meaning that despite all the alertness that market participants have they still are unaware of all of the opportunities that exist. In this sense the competitive process is in a ‘potential’ state but as soon as the opportunities are perceived they will be pursued in a most competitive way.

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