This is an interesting story, which shows that a market can spontaneously happen in almost every place where people want to live relatively happier. This story once again tells us that a good market should be free without external excessive intervention.
What's good in this story is that the opinion toward middle man is bad. In the article, author says that middle man's contribution that they gather together sellers, goods, buyers,capital is ignored. Actually, middle man is also contributive to the reduction of cost in transportaion.
A second good point in the article is that price is the guide to trade. Prisoners in this market is separated and thus there needs to be a media to guide the trade and exchange. Who can be objective? Price.
A third point in this article is that intervention may lead to unintended consequences within the market. For example, an injection of "currency": cigarette, can lead to a rise in price of general products (inflation).
There are several variables that affect the market: expectation of the future, shortage of products, etc
There's also a problem about barter. If some trader is a heavy smoker, he will consume the "currency"; cigarette , rather than spend it, which will make him worse off and a lack of currency in the market.
My question is: Does Grahem's law itself an implication of opportunity cost?
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