( Gavin
Ritz 2011.08.10.16.53NZT)
I have been given this a
lot of thought over the last few days and have been self analysing, I have been
selling a few of my properties and been looking at the idea of selling and
buying from a slightly different angle.
I even may be coming to
the conclusion that demand and price actually have nothing (well not exactly
nothing but not what normal economic theory tells us) to do with each other. PCT
has taken me down a very interesting path in relation, to price, reference
price level, other peoples controlled variables and mine.
In the negotiations (I am
selling a few properties of mine) I was asking myself continually what exactly
am I controlling for.
Here’s the thing, I
am just gap closing a number created fictitiously in my mind with some references
of numbers related to objects (houses in this case).
So what is an economic controlled
variable? I think it’s just a gap closing variable.
I think the formula I
gave in the earlier email may be right. It’s when the disturbances of
each party become more or less equal (price of “a” and price of “b”)
and the value reference level is met with each others controlled variable, that
is each controlled variable is gap closing a deal is reached, but not
perfectly.
Regards
Gavin