That’s very interesting. I never thought about how the concepts of a market where humans trade goods can generalize to things like thermodynamics. Two thoughts though.
One is that, at least colloquially, I feel like when people talk about the term “market”, it isn’t implied that it is an efficient market. Like maybe some tribe of people trade amongst each other, but there are still pareto optimal trades that can be made, and so it isn’t an efficient market. But we’d still call it a market.
And so secondly, I wonder is there is a better term for this sort of more general idea of market-like systems. I can’t think of any and I don’t particularly dislike the idea of calling them markets. Just thinking out loud.
That’s very interesting. I never thought about how the concepts of a market where humans trade goods can generalize to things like thermodynamics. Two thoughts though.
One is that, at least colloquially, I feel like when people talk about the term “market”, it isn’t implied that it is an efficient market. Like maybe some tribe of people trade amongst each other, but there are still pareto optimal trades that can be made, and so it isn’t an efficient market. But we’d still call it a market.
And so secondly, I wonder is there is a better term for this sort of more general idea of market-like systems. I can’t think of any and I don’t particularly dislike the idea of calling them markets. Just thinking out loud.