On Modelling Markets

We analyze critically the usual analysis of free (that is, unreguled by a central authority) market behavior of prices and traded amounts. We find that quite usually either the offer function or the demand function cannot be defined meaningfully, and other models must be set-up. We show also that profit maximization is most times uncorrectly used and wrongly calculated. We show that the absence of regulation (perfect price and production flexibility) and perfect competence does not necesarily lead to equilibrium between offer and demmand.