Title:
SUSTAINABILITY THOUGHTS 156: HOW DOES THE GENERAL IMPERFECT PARADIGM EVOLUTION MODEL IS EXPECTED TO WORK? THE CASES OF EXPANDING IMPERFECT MARKETS, OF SAVING IMPERFECT MARKETS FROM COLLAPSE, AND OF THE FALL OF IMPERFECT MARKETS DUE TO BINDING SUSTAINABILITY GAP PRESSURES

Authors:
Lucio Munoz ,Canada

Abstract:
If we transform a general perfect market evolution model under externality neutrality assumptions into a general imperfect market evolution model, we can extract the environment under which a dominant component imperfect market operates, which allows for the possibility of forever growth and no collapse. However, if we place this imperfect market under a framework of no externality neutrality assumption, then the model shows limits to growth and the possibility of collapse. And if the risk of collapse is real, the dominant component imperfect market model can either be saved or it can collapse if it cannot be saved. The saving mechanism allows for either a full fix or just a patch, but it all depends on whether or not there are paradigm shift knowledge gaps together with political will and academic will. If the imperfect market cannot be saved, it will flip perfectly or imperfectly to opposite or inverse opposite forms, and if possible, it will flip towards a market form that still allow it to keep the same legal and political loyalty structure it had before the flip. The above holds true for any dominant component based imperfect market, which makes the following question relevant: How does the general imperfect paradigm evolution model is expected to work? The cases of expanding imperfect markets, of saving imperfect markets from collapse, and of the fall of imperfect markets due to binding sustainability gap pressures. Among the goals of this paper is to provide a detailed answer, both analytically and graphically, to this question.