Let's examine the structure and complexity of markets. Markets, like all living systems, comprise a level of complexity beyond the comprehension of the human mind. The connections amount to billions—probably trillions.
Although the flow of production in an economic system travels from higher level producers, to lower level producers, ultimately to consumers, the flow of influence actually runs in the opposite direction—from consumers to producers. Prices throughout the structure of production, for example, reflect the preferences of consumers; not the "costs" of producers.
Complex Market Models
To demonstrate the flow of this influence I have presented a model that shows the complex connections in a simple market.
The presentation (using Prezi) steps through
the model created in PersonalBrain (see below). It should give you a sense of the complexity of even a small market. This presentation guides you through the model step by step. You should view it first.
The Presentation depicting a complex market will not fit on the small screen. To view the presentation, please open this page on a larger monitor.