Newton´s Laws of Motion and Price Theory

Tomá? R. Zeithamer (zeith@vse.cz)
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Tomá? R. Zeithamer: University of Economics, Prague, Faculty of Informatics and Statistics, Department of Mathematics

No 2604532, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The paper focuses on factual research in bibliographic and biographical databases showing that representatives of the Czech School of Economics took a leading role in the methodological use of applied and theoretical physics in the basic economic research, especially in the second half of the twentieth century.The linear and non-linear analytical structures of theoretical physics are compared with the analytical structures of commodity price theory in a market with nearly perfect competition. Newton´s equations of motion for the non-relativistic speed of instantaneous relative depreciation and instantaneous relative commodity prices over time are analyzed. Assuming that the market value of a commodity is fully determined exclusively by the value of the instantaneous commodity price, the price jerk equation acquires a form corresponding to the non-relativistic equation for jerk in mechanics, following from Newton´s second law of motion. In this paper price jounce and price crackle are defined.

Keywords: Instantaneous relative depreciation; Newton´s laws of motion; market value; nearly perfect competition; price jerk; price jounce; price crackle (search for similar items in EconPapers)
JEL-codes: A12 C65 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2015-07
New Economics Papers: this item is included in nep-com and nep-hpe
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Published in Proceedings of the Proceedings of the 17th International Academic Conference, Vienna, Jul 2015, pages 622-631

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:2604532

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