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Automatische Marktregulering

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  • G. Hamming

Abstract

Summary Automatic market regulation. The free market system can be considered as a cybernetic process. Due to time lags between decisions and realisation this type of process can generate cycles (Cobweb theorem). It is often tried to puts limits to desastrous price fluctuations be means of international product agreements. It cannot be claimed, however, that these agreements are satisfactory. The author's opinion is that the main difficulty is caused by the fact that the governments do not negociate on a working cybernetic process but on price limits. The author shows the possibility to smooth price fluctuations by means of buffer stocks. Selling and buying are exactly defined by given formulae. The system allows the market to find its equilibrium price; this essential task of a market mechanism is not affected by the buffer system. A system has been given in detail for the pork market. The consumer's price has to be increased by some 0,7 % in order to compensate the costs of reducing the price fluctuations to about 60 % of the original value. This example has only illustrative value.

Suggested Citation

  • G. Hamming, 1966. "Automatische Marktregulering," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 20(3‐4), pages 369-384, September.
    • Handle: RePEc:bla:stanee:v:20:y:1966:i:3-4:p:369-384
    DOI: 10.1111/j.1467-9574.1966.tb00485.x
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