Munich Personal RePEc Archive

The transfer space

Friedrich, T. (2010): The transfer space.

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The coordinates of the transfer space are loss of the source, gain of the sink and cost to both sides and compares the coupled gain and loss of two single parties to gain or loss of the ensemble of both, the invisible third party. Whenever two not identically equipped parties meet with the potential to exchange substrates one party will become a source and the other a sink. The outcome depends on the relation between fix cost, variable cost, productivity and affinity. The selfishly transferred substrate will optimize productivity of one or both sides and will lead under certain conditions to a productivity increase of the ensemble. This increase roots in the transfer of substrates from saturated to unsaturated production conditions. Brute force and educational conditioning take advantage of emotions to hide the real size of the cost to the exploited party. In case the transfer of substrates leads to increased productivity parts of the productivity might be reinvested to keep the exploited party. The lasting relationship is called wise exploitation. Wise exploitation may last for one or many generations depending on the use of brute force, education or breeding. To maintain a stable system the benefit must always exceed the cost. The transfer space views group (ensemble) selection as egoism based exploitation from catalytic networks to societies and interprets the decision process under external influence in a single economic entity.

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