BEND, Ore., April 10, 2018 /PRNewswire/ — According to Schock Market, Inc., an economic puzzle, unsolved since classical antiquity, may soon be cracked through the application of newly-conceived reservation markets.
The problem:
The economic puzzle in question is often referred to as tragedy of the commons. “The Tragedy of the Commons” is a 1968 report, written by American ecologist Garrett Hardin. Hardin discusses a scenario where English herdsmen overgraze a public meadow or commons with their cattle. The herdsmen’s benefit from grazing is stated as +1 while the cost of their activity is described as <1, because it is a cost the herdsmen share with society. This cost/benefit discrepancy incentivizes herdsmen to overgraze the commons, resulting in the destruction of the commons.
According to internet start-up, www.SchockMarket.com, present-day commons such as fisheries, watersheds, and grazing lands often suffer such degradation. In addition, public commons such as Yellowstone National Park exist as unique entities, with costs distributed across multiple populations. This complicates citizen oversight.
For example, public schools are a commons. The state of Alaska appropriates approximately $18,400 per student, per year, for K12 public education. Is this a reasonable expenditure? With no comparable and with costs distributed across both state and federal citizenry, it is difficult for society to take measure.
Compounding the problem is a defensive stance taken by stakeholders already profiting from a commons. These stakeholders use economic and political power, derived from their access to a commons, to defeat critics and forestall change. This maneuvering is called possession dominance, a term coined by Schock Market.
The result is an unyielding status quo and depleted public commons.
The solution:
Schock Market has pioneered a system where citizens may invest in a proposed alternative to the status quo. Citizen do so by bidding on reservations. Winning bids are formed through a unique combination of time-in-market and amount bid, called engagement value.
Markets are designed to be primed by citizen investors making reservations, accruing time in market, and offering suggested improvements for the market. As markets are refined and vetted, citizen investors are displaced by large institutional investors interested in winning the now polished market outright. The market is then presented to taxpayers as a voter initiative. If passed, citizen investors are rewarded with a payout based on their time in market.
Reservation markets use the efficiency of markets to reveal the outcome of proposed alternatives. In short, Schock Market engineers a competitor to the status quo, a competitor armed with a discernable future as it relates to cost, participants, and innovation. This clarity provides citizens with a choice between maintaining the status quo or switching to the now blueprinted alternative.
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Test markets:
Schock Market opens today with three test markets. Deschutes County Jail explores privatization of a jail with savings directed to construction of youth sports fields. Bend City Streets explores privatization of a street maintenance program with savings directed to immediate repairs. Native Run Brewery explores replacement of a hydroelectric dam with a river brewery and fish ladders.
Citizens registering at www.SchockMarket.com receive an a complimentary $5 million in funds for their trading account. These reserves may be used to acquire reservations within Schock Market but have no value outside Schock Market.
According to company founder, Spencer Schock, “We hope to unlock an ancient economic puzzle and improve the state of our public commons.”
About Schock Market
Schock Market, Inc. is an internet startup located in Bend, Oregon. The company is the first in the world to pioneer reservation markets. To learn more visit: www.SchockMarket.com.
View original content:http://www.prnewswire.com/news-releases/new-economic-tool-challenges-government-expenditures-in-bend-oregon-300625696.html
SOURCE Schock Market, Inc.
