W2 Markets A i2b

Summary

ビジネス市場の紹介と、特に市場とビジネスの関係、そして経済全体を理解する方法について語りました。重要なのは、誰がコントロールしているかという基本的な人間の本能です。しかし、市場システムの美しさは、誰もコントロールしていないという点にあります。市場システムは、自己利益にもかかわらず機能します。アダム・スミスは、自己利益が他人のニーズを満たすことを意図していると述べています。また、市場での相互作用は、相互調整を通じて行われ、これは日常のビジネス取引で非常に重要です。さらに、ビジネスの協力は、多方面にわたって行われます。例えばコーヒーの産業チェーンは、コーヒー豆の農家から、コーヒー屋まで多くの人々が関与しています。市場システムは、予測可能性と安定性をもたらし、私たちの日常生活に大きな影響を与えます。

Takeaways

• 🧠 市場システムの美しさは、誰もがコントロールしていないという点にありますが、それはシステムがコントロール不能という意味ではありません。自然の生態系のように、均衡を保ちます。
• 💡 市場システムは自己利益にもかかわらず機能し、人々が自分の利益を追求することで最終的に集団と個人の福利に寄与します。
• 🤝 市場での取引は、双方にとってウィンウィンの関係を築くプロセスであり、価値の非対称性と対称性に基づいています。
• 🤔 市場システムは、人々が予測可能な方法で世界を変える能力、つまり「代理性」を通じて機能します。
• 🌟 市場の強みは柔軟性にありますが、人々が自己利益を追求するという事実にもかかわらず、システムは集団と個人の福利を促進する仕組みを提供します。
• 🌱 コントロールの欲望は人間の基本的な本能であり、市場システムはそのような衝動に応えることができますが、同時に人々を制御しなくても済む柔軟性を提供します。
• 🛣️ 市場の協力は、単なる線形なものではなく、多方面的な協力を意味します。コーヒー豆の農民からカフェのオーナーまで、多くの人々が価値のチェーンに貢献します。
• 🏭 市場の協力は予測可能性をもたらし、人々が信頼性の高い供給者として知られることで、市場での取引が安定します。
• 📈 市場システムは時間とともに進化し、物理的な場所に結びついているという歴史的な側面よりも、オンラインビジネスの重要性が高まっています。
• 🌐 パademicの経験から、市場システムは非常に安定しており、日常生活に大きな連続性をもたらす能力があることがわかります。
• 📊 市場システムは、人々が日常的な相互作用を通じて相互調整を行い、外部からの衝撃に対しても適応し、ビジネスを維持する能力を発揮します。

Q & A

市場経済の強みは何ですか？

市場経済の強みは、単一の個人が市場をコントロールする必要がないことです。これは、システムが柔軟であり、多数の参加者が持続的なバランスをとる能力を持つためです。

市場システムが機能する理由は何ですか？

市場システムは自己利益に基づいて機能しますが、そのシステムは自己利益にもかかわらずも機能します。人々が自分の利益を追求することで、最終的に集団と個人の福利に寄与します。

アダム・スミスは市場経済について何と述べていますか？

アダム・スミスは、人々が取引を行う動機は自己利益であり、それが他の人のニーズに応えることを促進するという市場経済の基本ロジックを述べています。

相互調整とは何ですか？

相互調整とは、市場の参加者同士が期待値を調整し合い、価格や品質などについて合意に至るプロセスです。これは、日常の社会的相互作用でも見られるミクロなプロセスです。

オンラインでのビジネスや勉強の課題は何ですか？

オンラインでのビジネスや勉強の課題は、フィードバックメカニズムが失われることです。顔や体の微妙な動作などの反応が得られず、相手の反応を読み取ることが困難になるためです。

コーヒーショップが成功するために必要な要素は何ですか？

コーヒーショップが成功するためには、コーヒーの品質、サービスの質、場所、店内の雰囲気など、様々な要素が必要です。コーヒーの味が良くなくても、他の要素が良くてもビジネスを成功させることができる可能性があります。

協力とは何ですか？

協力とは、幅広い人々と多角的に協力し合うことを意味します。これは、製品が市場に登場するまでのプロセスを通じて、多くの人々が価値を加えることを含みます。

市場システムの予測可能性はどのように確保されるのですか？

市場システムの予測可能性は、参加者が信頼性のある供給者やパフォーマーとして機能し、他の人々が価値を加えることができるようにすることで確保されます。また、評判が重要になるため、安定したパフォーマンスが期待されます。

市場システムが進化してきた理由は何ですか？

市場システムは、時間とともに進化し、複雑さを増やしてきました。その存在は私たちにとって当然であり、日常生活に稳定性をもたらします。また、COVID-19パンデミックのような外部ショックにもかかわらず、ビジネスを継続できる柔軟性を確保しています。

市場システムが平和維持者として機能する理由は何ですか？

市場システムは、参加者同士が相互に調整し合い、ウィンウィンの関係を築くことで、平和的にビジネスを進めることができます。また、技術的な進歩や外部のショックに対しても、相互に調整し合うことでビジネスを継続できます。

市場システムの持続可能性はどのように確保されるのですか？

市場システムの持続可能性は、参加者が柔軟に変化し、新しい状況に応じて調整することで確保されます。また、適切な技術を採用し、ビジネスプロセスの自動化や遠隔アクセスの可能化など、事前に準備を行うことで、急激な変化にも対応できます。

Outlines

00:00

😀 市場とビジネスの関係

ビジネスの紹介ビデオで、市場とビジネスの関係、そして経済全体を理解することが重要であると語りました。人間の基本的な本能は、誰がコントロールしているかを知りたいというものであり、市場システムでは誰もがコントロールしていないという特徴があります。市場の強みは柔軟性があり、外部の衝撃にも対応できるという点にあります。

05:02

🤔 市場システムと自己利益

市場システムは自己利益に基づいて機能しますが、自己利益にもかかわらずうまく機能します。人々は自分の利益を追求するが、システムはその自己利益が最終的に個人と集団の福利に貢献する仕組みです。アダム・スミスは、自己利益が他人のニーズを満たすことを意図していると述べています。また、市場での相互作用は、双方向の調整を通じて行われます。

10:04

👥 オンラインでのコミュニケーションの難しさ

オンラインでのコミュニケーションは、フィードバックメカニズムが不足しているため、対話の中で細かい調整を行うことが困難です。子供たちは大人からのフィードバックに敏感で、対人関係での調整を学びます。しかし、電子メールやテキストベースのコミュニケーションでは、ニュアンスを読み取ることが難しいため、対話の質が下がります。

15:06

🤝 取引と市場の力学

ビジネスにおいて、バイヤーとセラーが取引を行い、それぞれの利益を最大化しようとしますが、取引は双方にとってウィンウィンの関係を築くことができると説明しました。一方で、力関係がある場合、取引は強制的になる可能性があり、これはビジネスの範疇外です。一方で、独占やモノポリー、モノプソニーなどの用語が市場の力学を理解する上で重要です。

20:06

🌟 市場の協力と価値の連鎖

市場での協力は、単に線形ではなく、多方面にわたる協力を意味します。コーヒーの例を使用して、コーヒー豆の農家から、コーヒーを販売するカフェまで、多くの人々が関与し、各々が価値を追加することで、最終的なコーヒー体験を実現しています。これらのプロセスはランダムではなく、意図的に行われており、ビジネスとして定着しています。

25:07

🔄 市場の安定性と予測可能性

市場システムは非常に安定しており、予測可能で、日常的な生活に多くの安定性をもたらします。2011年の東日本大震災のような外部の衝撃にもかかわらず、市場はその機能を維持し、人々は状況に応じて調整を行っています。特に、良好に運営されている企業は、技術を採用し、ビジネスの柔軟性を高めることにより、急激な変化にも対応できると強調しました。

🌐 市場システムの進化と変化

市場システムは時間とともに進化し、物理的な場所に縛られる必要がなくなりました。パンデミックの状況下でも、ビジネスはオンライン上で行われることができ、市場は依然として機能しています。取引所の取引床がVIRTUAL化されるなど、市場はより高度なレベルの洗練度を持っており、私たちの日常生活に大きな安定性をもたらしています。

Keywords

💡市場システム

市場システムとは、経済主体が自由に取引を行い、供給と需要が結びついて価格が形成される仕組みです。ビデオでは、市場システムがどのようにして経済全体を理解し、ビジネスと密接な関係を築くかについて説明しています。市場システムは、個々の意思決定者ではなく、多数の参加者が関与することで柔軟性と均衡をもたらすという点で美しさがあると述べています。

💡自己利益

自己利益とは、個人または企業が自分たちの利益を追求することを指します。ビデオでは、市場システムが自己利益に基づいて機能し、それが最終的に個々の福祉と集団の福祉に貢献する仕組みとなっていると説明しています。アダム・スミスの「目に見えない手」の概念に触れています。

💡相互調整

相互調整とは、取引の当事者が互いに期待値を調整し、最適な取引条件を求めるプロセスです。ビデオでは、花屋が市場で花を購入する際の例を通じて、価格や品質についての期待値をどのように調整するかについて説明しています。

💡価値チェーン

価値チェーンとは、商品やサービスを生み出すプロセスを意味し、原材料の調達から最終製品の販売までを網羅します。ビデオでは、コーヒーの栽培、加工、輸送、焙煎、販売までのプロセスを通じて、各段階で価値が加えられる仕組みを紹介しています。

💡競争

競争とは、市場内で同じ商品やサービスを提供する企業同士が、価格や品質、サービスなどで対決することを指します。ビデオでは、競争が市場の健全性を保ち、消費者にとって良い製品やサービスを提供する動力を与えると述べています。

💡独占

独占とは、市場内で特定の商品やサービスを提供できる企業が1社だけの状況です。ビデオでは、独占が生じることによって、消費者にとって不利になる可能性があると警告し、政府が公平競争を確保するために規則を設けることについて触れています。

💡共同作業

共同作業とは、複数の人々が協力して目標を達成することを意味します。ビデオでは、コーヒーの生産プロセスがどのようにして多国間で行われ、各々が異なる役割を果たして共同作業を行うかについて説明しています。

💡予測可能性

予測可能性とは、市場システムが安定しており、経済主体が将来の状況を予測できる性質です。ビデオでは、市場システムが予測可能性を持ち、経済主体が計画的に行動できるようになることが重要であると強調しています。

💡専門的パフォーマンス

専門的パフォーマンスとは、特定の分野で熟達したスキルや知識を用いて提供されるサービスや製品です。ビデオでは、現代の市場経済においては、多くの人々が物理的な製品を製造するのではなく、知識に基づく価値を加える専門的なパフォーマンスを提供していると述べています。

💡アダプティブ効率

アダプティブ効率とは、経済主体が市場の変化に対して適応し、相互調整を行いながらも効率的に活動を続けることができる能力です。ビデオでは、市場システムが外部のショックに対しても適応し、ビジネスを継続できるようになることが重要であると語っています。

💡コミュニケーションのニュアンス

コミュニケーションのニュアンスとは、非言語的な反応やサインを通じて伝えられる細かな情報です。ビデオでは、オンラインビジネスで直面する課題として、対面での相互作用から生じるニュアンスを読み取ることが困難になることが挙げられており、それが対人関係の調整において重要な役割を果たしていると説明しています。

Highlights

The importance of understanding who is in control in market systems, as humans are hardwired to think in terms of control and agency.

The revelation during the COVID-19 pandemic that even the best-laid plans can be disrupted by uncontrollable external factors.

The concept of mutual adjustment in market systems, where buyers and sellers negotiate to meet each other's needs and expectations.

The idea that market systems work both because of and despite self-interest, as individuals pursuing their own interests ultimately serve collective welfare.

The role of reputation as a key asset in market systems, driving predictability and reliability in delivering products and services.

The evolution of market systems to a high level of sophistication, bringing stability to our daily lives even during major disruptions like the pandemic.

The adaptability and resilience of market systems, as businesses adjust their operations in response to changing conditions and challenges.

The importance of embracing technology and automation for businesses to remain competitive and responsive in a rapidly changing environment.

The concept of a value chain in market systems, with multiple parties adding value at different stages from production to consumption.

The impact of exogenous shocks like natural disasters on market systems, highlighting the interconnectedness and interdependence of various value-adding activities.

The role of government in setting conditions for markets to flourish, without controlling the actions of the multitude of market participants.

The distinction between business transactions based on mutual benefit and exploitation or coercion, with the latter being more akin to crime.

The dynamics of supply and demand in market systems, with every buyer having a corresponding seller and vice versa, leading to win-win transactions.

The emergence of boutique companies specializing in specific parts of the value chain, contributing to the overall quality and experience of a product.

The shift towards knowledge-based, value-adding activities in modern market systems, with an increasing focus on specialized performances.

The potential for market systems to serve as a peacekeeper by facilitating cooperation and mutual adjustment among diverse parties.

The ongoing evolution of market systems in a post-pandemic world, with increased virtualization and reduced reliance on physical locations.

Transcripts

hi welcome to a introduction of Business

Week - I'm going to be talking directly

to you about how topic markets and

particularly what's the relationship

between markets and business and how

they understand economies as a whole ah

so you'll have the slides you do have

the slides by the time you're watching

this and I speak to a printout of my

slides here I was will do this is a

number of modules I'll add some extra

material subsequently to explain the

particular issues I'd like to go and

talk straight away about my second slide

here which is entitled who is in charge

and this is a really important point

because human beings are very hardwired

to think in terms of who is in charge

who is in control who is making

decisions this is a basic human instinct

we want to be in control of our world

around us of our physical world a

material world our social world very

often we don't have control one of the

really striking things of course about

the over nineteen pandemic is it

revealed to people how you can have the

best laid plans you can be completely

organized you can work for a highly

organized company or an organization

everything can be laid out and then

suddenly we're hit by things beyond our

control and coping with that lack of

control can be a challenge particularly

fun tends to be a little bit of a

nervous disposition we tend to be a

little bit anxious worried that we may

be buffeted by things that we can't

control those who are much more relaxed

and people from a cultural background

with who are relatively content with

just letting things be maybe a less

concerned with that impulse to control

you know control deeply is tied to what

we call agency

since of our individual capacity to

change the world to control the world of

course to impact on the world in

predictable ways and to respond

effectively to what the world throws up

at us so when we talk about market

systems immediately this issue arises of

who is in control now many critics of

capitalism of business tend to speak of

big business of powerful big businesses

and suggest that a few faceless people

in the boardrooms of the CEO offices of

large companies somehow controlling the

system and a lot of our discourse a lot

of the stories we talk about how society

works about how business works tends to

reduce it to images of a machine and a

machine implies that someone is in

control we have a system or we have a

system of systems which is a slightly

more sophisticated version of it and the

implication here is that somehow people

should be in control of the system it

should be accountable the system should

work for us now when we speak about a

market system it's great strength but

also what I think is so terrifying for

many people about market systems is that

actually no single person is in control

the government is not in control of it

government sets important conditions

within which markets proliferate or

don't which often has its own problems

but it doesn't control the actions and

can't even begin to control the actions

of a huge array of participants in a

market system so I'm going to say

explicitly that the beauty of a market

system rests in the fact that there

reason nobody in control that's not to

say that the system is out of control

it's one thing to say there is no single

person in control it's another thing

entirely to say that somehow the system

is out of control that rather very much

like our natural ecologies the natural

world that there tends to be equilibrium

we tend to arrive at certain healthy

balances unless we're buffeted by some

major external shock and that this is

the great strength of the system because

it allows the system to be relatively

flexible so of course we all know that

market systems and capitalism are

associated with self-interest but what's

really striking with market systems is

that it works both because of

self-interest and also despite

self-interest so the people are out

there looking to promote their own

interests but the system works in such a

way that self-interest ultimately serves

unbalanced collective and individual

welfare very famously Adam Smith the

great pioneering Scottish economist said

it wasn't the love of his fellow man

that got the butcher the baker the

candlestick maker out of bed early in

the morning to carry out their trade

it was self-interest they needed to get

up to go to work in order to earn a

living in order to make money to do the

things they want to do to care for their

family to provide education for their

kids to enjoy the good life to pay for

medicine if they fall ill for example

maybe to donate to a charity that they

they care for

so self-interest motivates people to

meet the needs of others this is the

basic logic of a market system and in

order to continue to earn an income to

do all those other things we want to do

in life to pursue our conception of the

good we need to engage in mutual

adjustment and in the reading for this

week Charles Lindbergh a very famous

scholar of markets of politic

sort of enterprise and the relationship

between market and politics in

particular has very much emphasized this

notion of mutual adjustment if you go

into a marketplace let's say you get up

early and you go to the flower market

there's about four different flower

markets in Tokyo you want to buy nice

flowers because you're a florist you

need them either to do your floral

arrangements which perhaps you provide

to companies and stores perhaps you run

a florist honey or some and you're going

to on sell these flowers to your

customers plus also do some flower

arrangements out of the store so you

want the best flowers you can get at the

best possible price so you're going to

go to the market you're often

established long term relationships

because you go every couple of days to

the market because flowers don't last

you have to keep buying those flowers

the florists I go to fairly regularly of

late at your SIA she says that she's

been working with the same sellers in

the markets now for several decades so

that she doesn't actually need to go to

the market anymore she can just call

them up and she can have very good

products into her at a reasonable price

now the buyer and the seller there will

mutually adjust to each other's

expectations they have price

expectations of course the seller would

like a higher price the buyer would like

a lower price but there's also issues of

quality and then there's always this

zone of negotiation that the flowers may

not be in their best condition but you

don't really mind if you get them cheap

enough now we always want the best

possible thing for the money but it's

about cost per cost performance and so

it's going to be a trade-off one of the

interesting ways I think we can get our

minds around this no John Mew notion of

mutual adjustment it's just to imagine

navigating through public transport

systems that's when you're walking

through a crowd we are going through a

process of constant micro mutual

just meant we sense that people in front

of us speeding up or slowing down

someone's trying to get across in front

of us perhaps because they have to go to

a subway exit which is to the right

maybe someone's coming from the opposite

direction we sense perhaps someone

coming towards us needs a bit more space

maybe they're a little bit physically

challenged maybe they're drunk we want

to get out of their way so this this

ability to mutually interact and it is

truly a miraculous thing if you think

about the the normal rush-hour for

example in Shinjuku that so many people

can transit through what is really quite

a mess in terms of a physical space and

actually not bump into each other and

when people bump into each other it is

so surprising precisely because we are

so good so good at this mutual

adjustment adjustment now that also

gives us some hints as to many of the

challenges of taking work and study

online when we start talking to a camera

anticipating that some time later some

people are going to be watching the

consequences we don't have any of the

feedback mechanism we don't get those

eye rolls those subtle movements of the

head or whatever it is that people do

which suggests that they either disagree

with us so they're not following the

point so we are constantly self

adjusting in response to very subtle

reactions in your social interactions

small children learn to do this very

quickly they need to they are

fundamentally dependent on adults to

raise them to care for them to provide

them their most basic needs and adults

potentially can also be a threat to them

not just through neglect but someone

who's in a is in a bad way emotionally

and children will know to to flee and to

protect

themselves so it is hardwired into us to

be very alert to the feedback from

others we're good at mutual adjustment

for the most part face to face once we

reduce our interactions to just an email

interaction text-based interaction for

example it becomes much more difficult

to read the nuances so although the

modern technology makes it seemingly

exciting that we can collaborate with

people from all over the world the

inherent dynamics of face-to-face

business and that nuance mutual

adjustment that that we undertake is a

challenge in a virtual age adventures

the technology gets better and better

the resolution of zoom gets better for

example they will be less of an issue

now in terms of really basic business

issues just a simple point for every

buyer there is a seller ok and for every

seller there is a buyer that sounds

obvious to state both people come to the

transaction you know looking for

maximizing their own interests but

automates a win-win situation very

simply put if I buy something at a

certain price the seller values the cash

over the particular thing that they sell

to me so the critical thing here is that

all transactions rest on an asymmetry

and a symmetry of values so if I could

sell this simply it would be because

someone else would value the information

that's written here more than whatever

price that I put on it I'd like to think

I could sell it for a high price that's

not the way we work which we charge you

upfront to get into university then you

just have to cop it I'm afraid and it's

more of a command system rather than a

spot market and I will talk about that

in a moment now while it's generally

win-win in

completely free markets when we have

freely participating parties under some

conditions it can be exploitative some

people are rather more powerful than

others and they can coerce people so we

shouldn't really think of that as

business we should think of it as crime

if it's a shakedown

you know if the Mafia comes along comes

by your bar your club your fish-and-chip

shop and says I think you want to make a

donation to our organization then that's

coercion you're simply being threatened

to pay so we shouldn't think of that in

terms of business in business terms

there are a lot of gray areas when a

company becomes absolutely dominant when

there are no other sellers of the

particular thing you want or no other

buyers are the thing you want then you

can run into real problems of being

exploited by the way in terms of basic

basic terminology when a company is

dominant it is the dominant seller we

speak of monopoly I think as you all

know the game is named after that NA

Polly okay um monopsony is when you only

have one buyer in the market so monopoly

is when you have a dominant seller in

the market and monopsony is when you

have a dominant buyer in the market and

that's a common problem for example if

you have fragmented producers so if I

have a small dairy farm and I'm making

milk and I have to sell my milk every

single day because the milk will go off

of course and there's only one

supermarket chain to buy it

they're an incredibly powerful position

and so what we do see is government's

creating a lot of rules about fair

competition to try and make sure that

companies don't take advantage of their

relative market strength and we'll come

back to that when we talk about issues

of governance at this point I want to

stay much more focused on the nature of

the markets

so I post a question you know what makes

a good coffee shop in the lecture notes

and that's something we can we can talk

about when we do an interactive session

but obviously its product its

performance its place it's a whole range

of things in addition to the coffee in

some cases the coffee can be terrible

but the stuff of the coffee shop can

still do quite well as a business so in

our next interactive session we'll throw

this over to you and ask you to think

about you know what does make a good

coffee shop what are you looking for

though okay

let's talk a little bit about the nature

of cooperation this is our fourth slide

so as I say the notes cooperation is not

just linear but multilateral what that

means is we're cooperating with a whole

range of people across a wide range of

dimensions we often speak about the

linear cooperation when we talk about a

certain product coming to market let's

run with coffee so of course you've got

coffee bean growers and many places in

the world one of my very favorite

coffees comes from Papua New Guinea type

called she good she good e in katakana

in the Papua New Guinean Highlands so

you get the growers of the coffee you

then of course see that the people who

run the coffee plantations employing

people because they simply can't

maintain an entire coffee plantation by

themselves so there are performances

there there are transactions a win-win

relationship where someone has the

coffee plantation in New Guinea they

hire people to work for them to tend the

coffee trees the harvesting for example

later on the initial processing of the

coffee beans then of course the coffee

beans have to be packed they have to be

shipped let's say they get to Tokyo now

they might very likely be roasted here

in Tokyo it's better

coffee beans to be kept raw and then

roasted just before you want to use them

indeed there are some nice roast Rees

now here in Tokyo which will roast your

beans to order Yannick a coffee is one

that stands out it's incredibly good

just to sit around outside and smell

your coffee beans roasting and you can

have them roasted to order and it really

does make a difference to have them

freshly freshly roasted but of course

there are lots of professional Roasters

who are doing interesting things and in

supplying restaurants supplying a whole

bunch of retail stores for example with

the roast coffee so a chain of people

adding value eventually the roasted

coffee ends up in the cafe it's ground

of course the barista makes the coffee

the coffee is delivered typically by the

waiter

perhaps the barista directly in the

small place to the customer so a lot of

people involved and we can think of that

as a value chain way back the starting

point with the coffee and all of those

other things the Machine and everything

else that is involved in the process and

we see boutique companies specializing

in just a very small part of that

process for example in Japan several

boutique companies that make coffee

grinders who make and pour coffee

instruments so the filter papers and

what not even with proprietary

technologies all of these add value

which lead then to a good coffee

experience at the end now none of these

performances are in the words of Lim

blong random accidental or coincidental

they're deliberate

people are doing this on a regular basis

this is their business endeavor this is

how they earn their living and when

there is disruptions it's shocking we've

seen several disruptions over the last

decade we saw with the

3:11 disaster here in Japan the triple

disaster of course we had the earthquake

then that tsunami and then of course we

had the the radiation problems with

Fukushima that led to a whole range of

issues a range of knock-on effects and

that reminded consumers ironically of

how incredibly stable market systems are

suddenly things that were just normal in

terms of their availability were not

available

suddenly there was difficulty in getting

milk now why was it difficult to get

milk the disaster didn't affect cows

directly the milk supplies were

disrupted by the very simple fact that

several major factories in Tohoku were

disrupted and those factories made basic

key inputs one of them made the bottles

and the caps for milk that was delivered

in larger containers so for commercial

applications more significantly a lot of

paper packaging particularly the

tetrapack type packaging and by the way

tetra pack is actually it's a Danish

brand and they are here in Japan and

they do manufacture but there are other

companies who use both the technology

and other technology those cami pack the

paper packs in which milk come comes

there was lots of manufacturing of that

into Hawker and so the disaster

disrupted that so effectively what you

had was milk producers dairies who they

were producing the milk pills need to be

milked every day there were customers

who wanted it but the product couldn't

get to the customers just simply for

want of a certain kind of packaging so

there are so many points of value adding

and any single one of those key inputs

when it's lacking can be deeply

disruptive and we see this in our in a

whole range of industries it's

particularly

striking for example in the creative

industries if you're making a movie you

can have everyone there but if the

camera technician sleeps in then it

doesn't matter that you've got Brad Pitt

and other a-list actors standing by and

everyone else and the sandwiches and

everything there that if someone who

knows how to use the camera isn't on

site then you don't make a movie okay so

we talked about the humdrum versus the

creative inputs in the creative

industries but this is vitally important

so there is actually great predict

predictability in market systems you

know the cameraman make sure to get out

of bed and get to the shoot on time

because in the famous Hollywood

expression you will never work again in

this town if you get it wrong okay

reputation becomes an incredibly

important asset you have a reputation

for being a reliable supplier a reliable

performer delivering your performance

adding value so that then other people

can add value as well and this leads to

predictability in the delivery of

products in a capitalist system so we

can think of what most of us do in a

modern market system is really providing

specialized performances and this is

language lindblom users it's a little

bit surprising as a language we tend to

think of performance as being on stage

being an actor or whatever I'm

performing now with a camera not in

front of a live studio audience

as in as in the classroom but this is

what we do of course some people still

make physical physical products what's

very clear though is the very fact that

so much of our economy has been able to

go online with the covert 19 pandemic

shows that only a minority of people now

are actually in the business of making

physical products so much of what we do

is knowledge-based value-adding that in

some sense couldn't be understood

performance so when we think about

markets in general what we're seeing is

that they have evolved over time they

have a range of underlying physical

properties in the sense that they are

tied to places and historically that was

much more important than it is today

again the pandemic shows that actually

much of what we do in business doesn't

need to be connected to a physical place

anymore and this is going to be one of

the really interesting sets of issues

that arises in a postcode and pandemic

capitalism we already have seen for

example that the trading floors of stock

exchanges such as the Tokyo Stock

Exchange has been completely done away

with it's all virtual now and that

actually there is really no reason for

anyone to be at the Tokyo Stock Exchange

in near Habashi

that actually that can happen virtually

and does happen virtually from pretty

much anywhere so in the next section

we'll talk about how market systems can

work as a peacekeeper my point up until

now just to simply summarize has being

that market systems have evolved to such

a high level of sophistication we take

their existence for granted they bring a

great deal of stability to our

day-to-day lives and even when we see

the shutdowns of the Cova 19 pandemic

what is really striking is the

remarkable degree of continuity we can

still get most of the things we want

relatively easily and insofar as working

styles have had to change people have

adjusted because they have an incentive

to adjust and market systems empower us

reward us for making that adjustment but

also they punish us if we don't make

those adjustments

and we are seeing that there will be and

there already are quicker victims of the

pandemic simply those companies that

haven't been able to respond rapidly to

the operating difficulties that we face

many of the reasons why some companies

get hit hard and harder than others in

the same sector is that ultimately they

didn't embrace the technologies the way

the world was changing in recent years

they were putting off those decisions

for example about automating business

systems about creating decent IT systems

allowing their their their staff to have

more working flexibility basic things

like being able to access data remotely

all of those kind of things that

companies that are well-run have been

trying to do for a decade at least that

which put them in a relatively good

position when you suddenly get hit by a

dramatic change in the operating

environment and as I touched on in our

first class and adaptive efficiency this

notion from Douglas north adaptive

efficiency is critical so mutual

adjustment in terms of people day to day

interacting within a market system and

then when we do have what we call

exogenous shocks shocks from outside the

system in some way or another can be

technological change for example the

ability of partner of parties to adapt

to those changes mutually adjusting so

that they are win-win dynamics and allow

business as usual even as so many of the

ways that business is done are very

decidedly unusual viewed historically