# The Market

# The Market

This is the third of six chapters on the logic of price. It deals with the phenomenon of the market, and starts with a discourse on the ‘logic of price’ and a critique of the supply and demand theory. The considerations are taken further with reference to a very simple but none the less adequate linear market model, with an appeal to theorems about distribution matrices known from the theory of Markov processes; a further treatment, without the linearity, involves the KKM lemma. Global stability for a loosely defined *tâtonnement* is demonstrated from a convergence of infinite products of distribution matrices, analogous to the familiar convergence of powers. The nine sections of the chapter are: the logic of price; supply and demand; price formation; market functions; intercept and slope; linear markets; *tâtonnement*; continuous markets; and uniqueness and stability.

*Keywords:*
continuous markets, distribution matrices, KKM lemma, linear market model, market, market functions, market models, Markov processes, price, supply and demand theory, tâtonnement

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