ABSTRACT
In their simplest conceptualization, markets for consumption goods are viewed as a straightforward matching of demand by supply. Neoclassical economics modeled this matching as tending toward equilibrium, in which wellinformed and rational actors seek to maximize their well-being by selecting amongst items for purchase, thereby steering the purposes for which productive resources are utilized. This model poses actors as homogenous and market contexts as relatively timeless and stable. However, the problems with such a model are now well understood. Markets are not synchronic states; they are dynamic and interactive processes. Actors are not homogenous, they are heterogenous and differently motivated and informed. Information is asymmetrically distributed. Monopolistic or oligopolistic market conditions are common. Also, demand is not wholly endogenous to consumers. It is frequently created and stimulated by a range of technologies.
