Is the market trying to act as a market?

Started 2 months ago | Discussions thread
Michael Firstlight Veteran Member • Posts: 4,437
Re: Is the market trying to act as a market?

DimLS wrote:

Michael Firstlight wrote:

DimLS wrote:

For any similar issue exploded, I believe that we should firstly determine what is the meaning of the term market

I understand that the market is: the laws, the corporations, the resellers from one side (supply) and the individuals (retail) and the businesses (demand). The market is the result of the interaction of the 2 worlds.

in the modern western free world, where the political power is being exercised though democratic elections, the supply is being controlled not to form oligopolies, and the business environment is the most liberal and mature that our world has. In such an environment, supply and not political or other interests, act within modern business strategies. These strategies try to drive demand. Yes they try. They decide to try. They are free to decide to try. And they try so as to be alive and prosper as competition in free modern economies is fierce. If they do not try their best they will die. This environment brought to us the dslrs.

in the modern western free world, the demand is free to decide. And it decides within the liberal paradigm. That means that the demand can compare products and services. Demands warranty, reliability, specs publications, clarity. The demand environment is so free it can even buy shares of the supply! It can even educate itself with online resources as this site, In order to review and count the supply’s outcome. This demand made toshiba sale its laptop business. Or one can say that Toshiba was not competitive enough, because competition of supply to convince gave the power of choice to demand to terminate a Pc brand.

The supply cannot convince the demand for anything that the demand is not willing to be convinced. especially at multinational level. Competition does not allow it by default. The actual king is the customer. And the customer needs to have companies alive.
Otherwise, anyone “blaming” companies for doing their job, should blame them for bringing in the market dslrs , yes the exact same dslrs that now some people claim that the companies try to “kill”.

That’s life and that’s market. Complex but so straight forward that there is no room for manipulation.

I believe the markets today is a view of democracy. With its flaws, still I’m glad it’s evolving naturally as people decide, either being at the supply side or the demand one.

So the entire point of your post is that in free markets, customers, not suppliers, drive demand? While I'd agree with that basic premise (if that is your main point), suppliers often make new markets where demand doesn't yet exist, creating the opportunity for new demand.

As an aside, your anthropomorphic and idiomatic writing style made your point extremely difficult to discern. If English is your second language, that's understandable.

English is not my native language.

Demand is the order placed or at least the need to place an order. Even when a need is created as you note, again demand makes it alive. And demand is you and me.

When you mention that companies create needs it’s not entirely true tin my opinion. Many companies try new things/products and business models, and they fail? Why? Because the demand needs were not met. So whatever argument you may use, the final choice is from the demand.

And to make it even more obvious, customers by default need the best, this is already a need. Safest car, faster internet, bigger phone screen, warmer home, better education and so on.

in free markets the customer can chose, in strictly regulated markets, customer has less or no options. If you “demand” options (even when you do not know they could exist) then you are asking for a kinda free market.

Companies make new markets all the time. They frequently invent new things customers don't even know can exist with the expectation that they can generate demand, even without knowing whether sufficient demand will materialize or be sustainable if it does materialize. History is full of limitless examples of providers generating demand for both useful and entirely useless things; Need, and resulting demand, can also be partially or entirely emotionally/psychologically generated.

Bottom line: Consumers don't invent or innovate, and if they do they become a suppler and market-maker.

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