Garnett’s Minimization Law of Human Behavior

August 24, 2009 Uncategorized, behavioral economics | Comments (0) Don @ 8:16 pm



In the world of Supply and Demand the money that one group of people are willing to spend for something is equal to the amount of Money another group of  people are willing to provide (sell) that something.  The something can be anything, either goods (a product) or services.  Money is identical to the time of Employed men times their Wage rate as that is exactly what one can buy with money.  The production of that something in a physical facility has dimensons, like the Radius of a spherical tank brewing beer, and the quantity of beer or its Volume is proportional to the Radius raised to the power of the number of dimensions.  In this case V=R^(N)=R^(3), since the number of dimensions is 3.  In general, the economy is evolving, that is, it is a function of Time.  The rate of change with time for the variable, say Employed is dE/dT, and Radius  is dR/dT.  The behavior of people when it comes time to change supply and demand is defined as Garnett’s Minimization Law:

.

“People minimize their time per unit of dimension, namely d((dE/dt) / (dR/dT))/dT  = zero = 0 .

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The result is that the Log(Money)=(1/N)*Log(Volume).  Also,

Log(Price)=(1/N-1)*Log(Volume)

and other relationships that can be worked out from Money=Price*Volume=Wages*Employed=Wealth+Costs,

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and the fact that demand is frequently exponential with time.


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Experience Curve of H1N1 Swine Flu

August 3, 2009 Uncategorized | Comments (0) Don @ 6:16 pm



The price of the flu is death of a fraction (shown below) of those infected.  The volume is those that have been infected.  The experience curve of the h1n1 flu follows:

recent-us-deaths

Which has slope of 2.

The number of dimensions m, normally being used is: Slope=1/m-1, hence in this case 1/m=2+1=3.

However, we are not infecting the virus it is the other way around.  Hence from the viruses point of view the number of dimensions is 1/m not m, and therefore=3.  It is a volumetric production rate.  Presumably the graph of deaths vs. invections will continue until the number of uninfected people is beginning to diminish, somewhere over half of the population.

The death rate per thousand infected people (the “fraction”) has been rising but recently has been diminishingas shown in:

recent-us-deaths1


Tags: Add new tag, Bruce Henderson, CHEMTECH, Death, Donald I. Garnett, economic ecosystems, economic growth, economic theory, Economy as Ecosystem, ecosystem, Encyclopedia of Chemical Processing and Design, experience curve, Experience Curves, geometry, graphs, gravity, macroeconomics, math, mathematics, Michael Rothschild, money, Perspective on Experience, price, scale factors, Swine flu, time, us dollar
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