Monday, July 11, 2011

Fractal Elasticity along the straight line curve.

Fractal Elasticity - along the straight line curve.
Click to see most recent developements that complement this entry.

After discovering in my early blog that the elasticity of the Koch Snowflake fractal is constant, I have since pondered on what is the meaning of all this?
Economic theory suggests that all objects have this constant elasticity or are logarithmic in nature. The next thing to to is to straighten out the fractal curves.
I produced the following diagrams to do just that and to demonstrate the change in fractal elasticity as the fractal developments. The above diagram shows constant elasticity, and the below variable elasticity along the straight (log) curve.

The signifcance of elasticity?
Elasticity along a straight line curve will vary along its length: from a highly elastic (elastic), to a low elasticity (inelastic).
What does it mean? Highly elastic - at the early stages of development - suggest another iteration or experience will provide high benefit, utility or satisfaction - it is exciting, it is new. Conversely, inelastic - at later stages of development - suggests another iteration or experience will provide little added benefit. From euphoria (in the beginning) to boredom ( in the end).

Cost Elasticity
What I take from this is that 'we' are insensitive to cost in the early stages of development. As we develop, we become more cost sensitive.  More on this later.

As I have stated on the diagram, marginal cost elasticity depends on where the line cuts the x or y axis: but with this in mind, I have found that the coefficient always starts high (or elastic) and runs to low, so I am confident in my above statement.

For more, take a look at these diagrams (2012).

1 comment:

  1. So we could say the degree of elasticity is also known as the measure of value?