Title: Growth, Industrial Externality, Prospect Dynamics and Well-being on Markets,
Abstract: Functions or 'functionnings' enable to give a structure to any economic
activity whether they are used to describe a good or a service that is
exchanged on a market or they constitute the capability of an agent to provide
the labor market with specific work and skills. That structure encompasses the
basic law of supply and demand and the conditions of growth within a
transaction and of the inflation control. Functional requirements can be
followed from the design of a product to the delivery of a solution to a
customer needs with different levels of externalities while value is created
integrating organizational and technical constraints whereas a budget is
allocated to the various entities of the firm involved in the production.
Entering the market through that structure leads to designing basic equations
of its dynamics and to finding canonical solutions out of particular
equilibria. This approach enables to tackle behavioral foundations of Prospect
Theory within a generalization of its probability weighting function turned
into an operator which applies to Western, Educated, Industrialized, Rich, and
Democratic societies as well as to the poorest ones. The nature of reality and
well-being appears then as closely related to the relative satisfaction reached
on the market, as it can be conceived by an agent, according to business
cycles. This reality being the result of the complementary systems that govern
human mind as structured by rational psychologists.