“The value in time is the time in value”, states the author, pointing out the crucial importance of time even in static price, where others see no room for it, perhaps except in bargaining, which takes some time, during which the asking and offered price may change considerably. If there is no open bargaining, say in a mall, there is in the buyer’s mind. It lasts as long as the potential buyer considers buying the merchandise at the posted (non-negotiable) price and eventually becomes real buyer, who pays with real money. The value of the merchandise exist only in the buyer’s mind. It is intangible, just like all opinions are. It materializes (becomes tangible) however upon the buyer agrees to pay in full (not when he paid in full though). Thus the buyer, and not the seller, defines the price. The buyer may not know anything about supply of and demand on the merchandise. Thus alleging that these define the price is blind negligence camouflaged in logic. Main stream economy pontificates even harsher fallacies. No such things are in Prendology, which is the science of value and price laws of marketables based on human nature. Only the key principles, laws and corollaries are summarized here. Should you disagree in these, this slideshow and the Prendology college textbook (comming soon) is not for you. You should read Keynesian books instead and observe carefully the mirage that the tail wags the dog.

1. PRENDOLOGY
Prendology is the body of laws, based on human nature,
that tie together the value and the price of marketables.
Copyright ©, 2014 LLC, 2014. All rights reserved.

2. A marketable is any object, service or deed
that has a perceived value on a market.
Marketables can be sold, exchanged or transferred, as well as created, destroyed or
stolen and found.
Beyond physical goods and services, examples of marketables include assets and
obligations, such as:
• Stocks, bets, tickets, leans, heritage, certificates (of membership, or options);
• Contracts, deeds, mortgages, and notes;
• Patents, trademarks, trade secret, rights (hay, mineral, of-way, etc.) and more
Related websites:
Soros-Conjecture.com
Sell-Rights-Here.com
Mises.org
Related authors:
Carl Menger
Eugen von Böhm-Bawerk
Ludvig von Mieses

3. Definitions:
• Marketable (see defined above)
• Value = Perceived use or usefulness of marketables expressed in
money terms or the emotional or logical perception of the
measurement of a benefit provided by a service, asset or a deed.
• Price = The money a buyer pays for a marketable.
• Asking Price = The price the seller asks for a marketable.
• Paid Price = The price the buyer paid for a marketable.
• Bias = Mental inclination or aspiration related to buying decisions. For
instance: want, need, uncertainty, greed, fear and many more.
• Appreciation, appreleration, wealth and more (see below)

4. Concept
• Price is observable and real, while value is non-observable and imaginary.
• The price depends on the value, not vice versa (i.e., value defines price).
• Value solely depends on biases, which are intangibles like opinions.
• Biases are time related on the 0th, 1st and 2nd order.
• Markets are inherently deterministic, even when chaotic by nature.
• Predicting future price from past price history is unreliable.
• Predicting price trends from trader biases are dependable.
• Predicting future market price from past market price history is unreliable.
• Predicting market price trends from market biases is dependable.

5. Principles (1-4)
1. The value is intangible. It exists only in the traders’ mind. It
materializes (becomes tangible) when the buyer pays in full. Thus,
the price is buyer defined (i.e., not defined by the seller), at least as
long as the buyer can voluntarily refuse buying without
consequences, because the market is non-coercive (free) with
voluntary traders.
2. The buyer’s biases—and nothing else—define the paid price.
3. Those biases are time related on the 0th, 1st and 2nd order to the
time derivatives of the price.
4. The higher than 2nd order time derivatives and biases are negligible.

6. Principles (5-8)
5. The three biases define three components of the value.
6. These three components—and only these three components—add
cumulatively to the instantaneous value.
7. The value can be influenced by asking price and news on the
marketable.
8. Money is a unique commodity—and nothing else but commodity—
in which the price is paid. Its value is also intangible, even if it is
non-fiat, e.g., gold or silver, since value is imaginary. Fiat money is
not money but legal tender with artificial mandatory value.

7. Laws (1-4)
1. For every seller’s valuation exists a buyer’s counter valuation, which
is equal and opposite when the price is agreed upon to be paid (not
necessarily when it is paid in full).
2. 0th order [need] bias: Price is proportional to value. Higher valued
goods are expected to be priced higher and vice versa.
3. 1st order [uncertainty] bias: Appreciation is proportional to value.
Higher appreciating goods are expected to be priced higher and vice
versa. (Appreciation is the price velocity.)
4. 2nd order [fear] bias: Appreleration is proportional to value. Higher
apprelerated goods are expected to be priced higher and vice
versa. (Appreleration is the time rate of the appreciation. It is the
price acceleration.)

8. Laws (5-8)
5. The sum of the 0th, 1st and 2nd order biases defined value
components is equal the time dependent news value, which
however can be nil.
6. The sum of the 0th, 1st and 2nd order biases defined value
components, which are dependent on the difference of the asking
and paid price, is zero.
7. The product of the 2nd order bias (fear) and the 1st order price
derivative (appreciation) is conserved in any trade (invariable).
8. The 1st order price derivative remains constant as long as the 2nd
order price derivative is zero, while the price is constant if the 1st
order price derivative is zero.

9. Corollaries (1-8)
1. Trades are inherently periodic. The period is solely trader biases defined.
2. Free markets are inherently cyclical. The long repeat period is defined by
the cumulative price of ownership and the inflation creep rate.
3. Wealth is the product of value and price, thus it is intangible.
4. Supply and demand do not define the price, though influence it.
5. Function and cost do not define the price, though influence it.
6. In a chain of commerce (resale commerce), the 1st trader’s biases
influence overall response predominantly and with that, the final price.
7. In that chain, the first and last trader gains or looses the most.
8. In resale commerce, local/temporal actions cause only local/temporal
effects.

10. “The value in time is the time in value”
"Money never starts an
idea;
it is the idea that starts the
money"
- W.J. Cameron