Peter Belohlavek


Market growth: Think before lowering the prices to grow

Price Elasticity of demand measures the responsiveness of demand to a change in the price of the product. Alfred Marshall first developed it. From our point of view this is one of the most believed fallacies in economic knowledge, because there is no direct dependence between these variables.

The price elasticity of demand is calculated by considering the percentage change in demand and dividing it by the percentage change in price.

But this relation is real only if there is no change in the perceived value of the product.

We consider the traditional theory an explanation of a particular situation which can not be considered a law.

Considering the Unicist Logical Approach the elasticity of demand, analyzed from the point of view of the supplier, depends on the price and the perceived value of products.

The sole fact of a product being used changes its value. Therefore it is necessary to understand that the “price elasticity of demand” depends on the price and the subjective value that sustains the price. The price elasticity occurs only within the fuzzy set described and defined by the value-price relation.

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2016/03/turi.pdf


Costs do not influence the use value of products

The value of a product does not depend on the cost to produce it. Costs might define the limit of the feasibility of a business but the do not define the value of the product.

The following metaphor will provide the general idea.

“The cost of a glass is given by its solidity.
The value is given by its hollowness.
Costs add no value.
Values add no costs.
But both integrate the glass.”

The value of a product is what makes a business possible and drives the maximal strategy. It has no causative relation with the cost. This is self-evident in the software business. But in the construction business, there appears to be a relationship between costs and value that in fact does not exist.

The costs of products define the minimum strategy; they define the feasibility of a business. In some type of businesses these limits are more significant than in others. But understanding that the costs have no causative relationship with the value allows defining expansive and profitable business strategies.

In business activity, the preceding metaphor can be completed with the saying:

“Businessmen/women need to reduce the costs, that have no value,
and increase the value that has no costs.”

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2016/01/turi-1.pdf


Discovery of the Nature of Decision Making

The discovery of the Concept of Decision Making opened the possibilities for increasing the accuracy of this process by introducing the essential aspects that drive decision making processes: the objective aspects, the subjective aspects, the reasonable groundings and the ethical justifications.

About Foundations

Foundations are reasonable, understandable and provable arguments. Fallacy avoidance is ensured when foundations are included in a decision making process. That is why foundations are basic in decision making.

Decision MakingFoundations avoid decisions when the end justifies the means. Foundations establish the reasonable limits of what can be decided.

There are several conditions that have to be given when making a grounded decision.

Foundations must be reasonable: that means that the nature of a reality needs to be described in a reasonable way.

Foundations must be provable: which means that they have to be able to be proven directly or through their materialistic aspects. The nature of a reality can only be proven through forecasting its materialistic evolution.

Foundations must be understandable: which means that an individual can only participate in a decision process if s/he understands the nature of the decision.

Decision Making Segments

Empiric decisions

It is the decision that is basically based on provable groundings. Empiric decision making uses all the empirical tools to sustain the validity of what is being decided (Statistics, experiences, pilot tests, etc). Empiric decisions are put into action based on economic justifications with the limits of subjective justifications.

Logical decisions

Logical decision making is based on the capacity of understanding and reasoning the arguments that sustain the decision making process.

Logical decision making processes use explicit or implicit models to analyze reality in order to make things happen. Logical decision making processes are put into action based on subjective justifications and are sustained by the economic justification of what is being decided.

Subjective decisions

Subjective decision making is based on the ethical and subjective justification of the individual who is deciding. Although the materialistic decision making is included, it is limited by the subjective boundaries of the individual.

Subjective decisions dominantly use feelings, intuition, beliefs, convictions and personal goals as drivers. Subjective decision making processes are put into action based on logical groundings and are sustained by empiric validation.

Materialistic decisions

Materialistic decision making is based on the ethical and materialistic justifications driven by the needs of deciders. Materialistic decisions have a high level of objectivity in order to build a bridge between the objective needs of the environment and the individual.

Objective decisions are based on measurable facts, objective relations between values, benefits and costs and the need to grow of all participants. They are put into action based on empirical groundings and sustained by logical validation.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2015/11/turi.pdf


Stock markets depend on the trend towards evolution

The evolution of markets is what makes them more reliable. Thus, markets that evolve, naturally establish a context that allows making businesses.

Investment requires an evolution context and speculation is more profitable in involution contexts. Therefore investments foster evolution and speculation fosters involution.

About Evolution and Involution

The double dialectical process that produces the double pendulum generates a high level of entropy in each movement.

The higher the level of evolution, the smaller is the amplitude of the pendulum and the lower is the entropy.

Theoretically, evolution could drive towards perfection, where materialistic and non-materialistic reality is one. At this level reality as it is perceived by humans could not exist.

But this is just hypothetical. Real life includes involution, which occurs when a specific object becomes dysfunctional to the environment.

Thus involution begins including increasing amplitude of the double dialectical pendulum.

This implies increasing entropy between the positions, generating a trend in which the loss of energy that occurs between the polarities generates an involving trend.

Involution drives toward the death of the object, its mutation or its recovery, when it finds a source of energy to compensate the involution trend and begins an evolution cycle.

In any case, it implies a new object with a different energy level with or without mutations.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
http://www.unicist.org/repo/#Unicist


Unicist Forecast of the Evolution of Markets

The Unicist Approach to Future Research is based on the research of the unicist ontogenetic intelligence of nature that started at the beginning of the 80’s.

It was a step by step discovery based on the apprehension of the nature of social phenomena entering afterwards in the institutional and individual evolution. Its integration with biology and physics was the final stage that was achieved.

This approach is based on the fact that future and past are not symmetric. This is the case of all the environments that are evolving or involving. The past and the future are only symmetric in stagnated environments.

The objective of the unicist approach to future research is to define a future scenario in order to adapt and influence it.

When an individual “looks back” at the history, the events that occurred are reasonable, understandable and logical. Therefore when approaching the future what is required is having the “logic” that is evident when analyzing the events of the past.

The building of future scenarios is based on the fact that the structure of the unicist ontology of a specific environment needs to be found in the past and that the facts of the present are used to infer the future.

The unicist approach to future research is based on inferring the future based on the laws of evolution established by the ontogenetic intelligence of nature, which allowed developing the unicist ontology of evolution.

This allows building reliable future scenarios.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2015/06/turi-1.pdf


Pilot testing: The core of a pragmatic approach to business

Doers are natural users of pilot tests because they provide the security that what they are doing will work.

Pilot testing implies testing a functionality and requires a precise design of the tests. The “trial and error” applications are not pilot tests. Pilot tests must include both destructive and non destructive tests.

Pilot tests are the drivers of the unicist reflection processes. Pilot tests have two objectives:

  1. Destructive Testing
  2. Non-destructive Testing

1) Destructive Testing

Falsification, in the field of complex problems, implies finding the limits of the validity of a given knowledge. To do so, it is necessary to develop experiences in homologous fields until the limits of validity are found.

Two elements are homologous when they have the same “nature”. A whale and a dog (an extreme example) are homologous if they are considered as mammals. A dollar and a yen are homologous considering that they are both money.

2) Non-destructive testing

Validation implies the factual confirmation of the validity of knowledge. Validation is achieved when knowledge suffices to exert influence on a reality in a predictable way.

The validation process is homologous to a non-destructive test in the field of material research. Validation implies cause-effect relations. Therefore, validation can only be applied to a simplified field of a complex reality.

Conclusion

Pilot tests must include both non-destructive and destructive tests. The application of destructive tests requires being aware of the concepts of the realities where this test is applied.

Knowledge is secure when its validity and its limits were found. Exceptions to this rule are universal natural laws which are “universally homologous”.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized world-class research organization in the field of human adaptive systems. http://www.unicist.org


The Factor Zero – The power of nil – Part IV

Complex adaptive systems are integrated by a conjunction of “objects”. Mathematically, this integration of objects implies a multiplication of their representative factors. If one of them is “zero”, the whole adaptive system doesn’t work.

Factor ZeroAdaptive systems cannot allow the existence of zeros. One zero suffices to destroy a system.

The Factor “Zero” is an anti-concept that destroys any adaptive system. It establishes the groundings for inaction, annulment or destruction.

The ontology of the factor “zero” describes how human inaction, annulment or destruction is sustained by a fallacious ethics.

It is the ethics of stagnant survivors that provides them a feeling of superiority based on their capacity to hinder value adding actions in their area of influence.

Factor “zero” is the integration of suspicion, doubt and unawareness in order to avoid the responsibility of an adaptive system and destroy it.

It suffices if one of these elements exists. We will use the ontological structure to define them:

The purpose of suspicion is distrust. This implies that the final objective of the factor zero is to install distrust in order to destroy what threatens the individual.

It adopts extremely subtle disguises in order to work. If not it would be noticeable and avoidable. Usually, when the factor zero is perceived it is because it already worked.

Suspicion is driven by the fear an individual feels in a situation and the guilt of being unable to deal with it. The active function of the factor “zero” is given by the doubt individuals have when dealing with adaptive systems.

Doubt is basically driven by the individuals’ super-ego and operationally by their superiority complexes, the counterpart of inferiority complexes, and their unwillingness to make trade-offs with the reality they work in.

The energy conservation function of the factor “zero” is given by the unawareness individuals have of the situation they are living in.

Unawareness requires learning avoidance in order to exist. The learning capacity is sustained by the energy conservation principle given by the inferiority complexes of individuals. Operationally, learning avoidance and inferiority complexes define unawareness.

At an operational level the factor “zero” can be considered as the consequence of integrating doubt, unawareness, human complexes and price paying avoidance.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/financials/wp-content/uploads/2015/04/turi.pdf


Unicist Logical Approach: Survival guerrilla confrontation

The survival guerrilla confrontation happens between most of the small organizations, entrepreneurs and professionals who have not developed a brand or a stable space in a market.

Survival Guerrilla ConfrontationThe survival guerrilla confrontation occurs beyond the ethics of a market. Materialistic survival is all what counts in this strategy.

The survival guerrilla confrontation occurs beyond the ethics of a market. Materialistic survival is all what counts in this strategy.

Since what counts are only material things, to be able to survive is the most important feature in this confrontation.

In this case, the marginal participants have two different ways to survive:

  1. Attacking innovators
  2. Attacking “retarded” competitors

There are no rules in these confrontations and they are common in the marginal small business segment.  Those who are able to survive having a competitive product or service become competitors of the market.

In underdeveloped countries, survival guerrilla confrontations prevail in the market and they legitimate market uncertainty. In developed countries they represent the marginal sectors of the economy.

The losers of this survival guerrilla confrontation disappear.

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. http://www.unicist.org


Unicist Fundamental Technologies to Influence Markets

Fundamental technologies allow designing actions to influence the value of stocks. The fundamental structure and technical analytical information must be managed.

The unicist fundamental technology is ontology based and object driven to transform the knowledge of the unicist ontology, ontogenetic map and ontogenetic algorithm of an adaptive system into object driven actions to produce predefined results.

As adaptive systems evolve according to the rules of the ontogenetic intelligence of nature, several compromises need to transform principle driven definitions with no cause-effect relationships into results producing actions.

The generic approach:

1)      Human adaptive systems are in permanent motion. To establish a fixed point based on their oneness the ontological structure needs to be discovered. This definition includes limiting the boundaries of the system.

2)      A taxonomic-genetic compromise needs to be done to transform the oneness into the elements that integrate its ontogenetic structure.

3)      A genetic compromise is needed to deal with the sub-ontologies or objects included in the ontogenetic structure.

4)      A naturalist compromise is necessary to divide the objects of the ontogenetic structure into the double dialectical elements and make the consequent inferences on their behavior.

5)      A categorical compromise needs to be done to define the ontological categories at an operational level.

6)      A motion compromise has to be done to define the actions that allow influencing the adaptive system.

This approach implies transforming a human complex adaptive system into a manageable system making the necessary compromises to transform its oneness into operational actions to generate results.

The knowledge of an ontological structure of a unified field defines the existence of the possibility to exert influence on it.

Mathematically, a possibility exists or not ( 1 or 0 ). The success of influential actions belongs to the field of probabilities because of the multiple compromises that have been done.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
http://www.unicist.org/repo/#Unicist


Context for Business Virus Multiplication – Part V

Anticoncept of the Object Driven Organization

The objective of viruses is to multiply in order to facilitate the achievement of the personal goals. Virus multiplication needs a context.

The context of virus multiplication is the existence of all or some aspects of the anti-concept of object driven organization.

It implies that there has to be an organization with a weak immune system.

Organizations with weak immune systems have the following characteristics:

  1. They are task driven
  2. They have analogical and common sense procedures
  3. They have verbal and subjective action guides
  4. They are based on experience driven activities

The Anti-concept of the Unicist Object Driven Organization

There are people who need to approach reality based on their subjective experience. The object driven organization cannot be used when the minimum strategy of the users is based on experience based intuitive common sense procedures and subjective (personal) action guides.

In this case processes are based on task orientation which is guided by the previously mentioned subjective experience.

In the following lines you will find a short description of the organizations in which the object driven organization cannot work.

Goodwill dependant

The object driven organization is a threat when the goodwill of the members of an organization is the driver for work.

Directive dependant

The object driven organization exceeds the acceptable responsibility level when people prefer to follow personal instructions instead assuming the responsibility of processes.

Leadership dependant

The object driven organization diminishes the image of leaders when those who lead need to exert power within the organization.

Benchmarks dependant

The object driven organization is a utopia when the members of organizations are used to “copying and pasting” the organizational processes of others.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/financials/wp-content/uploads/2013/11/turi-1.pdf