The process [] (frz. " groping attempt "," Herantasten ") describes the interpretation of the market mechanism as auction procedure after whale-races.

It is subordinated, there would be an auctioneer (invisible hand), who (first arbitrary) admits prices for goods and factors gives and to who from the consumers and enterprises the quantities inquired offered to these prices and are communicated. , The auctioneer does not change voices supply and demand the prices, until a market-vacating equilibrium results.

Proceeding of the auctioneer:

• Surplus demand: Increase price
• Surplus offer: Lower price

By trial and error the auctioneer touches itself to the Gleichgewichtspreis. Only then it comes to the exchange.

Basic assumptions:

• complete competition
• use-maximizing (rational) behavior of the consumers
• It can be acted only to Gleichgewichtspreisen

Articles in category "Tnnement process"

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