In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
All market interactions of entrepreneurs shape the economy. It is the sum total of all companies, interconnected with each other in their marketing: the commodity produced by one company is consumed by another, and they all trade their commodities through the market. The variety of products in the economy is determined by the possible economies of scope; the quantity of products is defined by the possible economies of scale; and the overall size of the economy is according to the possible economies of span.
Historical Backdrop
• JOHN MAYNARD KEYNES The General Theory of Employment, Interest, and Money: economy.
• JOHN COMMONS Institutional Economics: bargaining transaction.
• RONALD COASE The Nature of the Firm: market.
• FRIEDRICH VON HAYEK Competition as a Discovery Procedure: catallaxy.
• HERBERT SIMON Organizations and Markets: coordination by prices.
• JEAN-FRANCOIS LYOTARD Oikos: economy as nomos and negative entropy.
