barter market place


olivier ch

We generally need more than 30'' to question common sense about
fondamentals concepts. Please, let you the necessary time to consider
the following even if I am not known from most of you, and if the idea
of barter is old and looks primitive.

A market place is where we can find the best price. To be compared,
prices need to use a common value standard - which is a money. That's
why most economist considers that a barter market place is impossible.

Economists also consider that "coincidence of wants" is rare with
and not with money. This is true if we only consider bilateral
relations. But the real potential of barter remains hidden.

Why barter market place is possible

Let us define the price differently: the rate between provided and
received quantities.

A price is defined for each couple (provided good, received good), and
not simply for one good as we consider it usually.

Let us consider an example (not very interesting, but illustrative)
two partners.

When we say for example oranges are sold at 2$/kg, it is the price for
the couple ($,Kg of orange), from the buyer's point of view. From the
seller point of view, it is 0.5kg of oranges/$.

The equality of prices of buyer and seller has no meaning, but the
product of prices has one: an agreement exists if this product is 1 (a
non dimensional quantity). An agreement is also possible if the product
of prices is >=1, and represents an opportunity for both buyer and

A simple illustration of the situation is where, using traditional
definition of prices, the buyer accept to by 3$/kg and where the seller
accepts 1$/kg. the price of 2$/kg will be for them a win-win situation.

Now, let us consider a barter exchange between 3,4,5 peoples. This new
definition of price is always effective, quantities being monetary, of
goods or services.
A group of exchange is also possible if the product of prices is >=1,
profit of the collaboration can be equally shared between partners.
From this new point of view, we can define a barter market place where a
participant can look for the best price by selecting the group of
partners that will give him the best price as defined earlier.

A stock exchange that strengthens alternative economies

This barter market place combines collaboration between partners and
competition for the best price.

It can be used to create echanges between community currencies by
bartering their own currencies, and make them free from dominants
markets. It can be the stock exchange of community currencies.

When commitments of parners are more generous than necessary, the
is equally distributed between the partners of exchange, and a barter
contract is settled, where each partner gives to an other a given
quantity of the stock he owns.

Details on how it works

I am software engineer, and have now a model and algorithms that makes
that search. The model defines stocks owned by participants and
unilateral commitments to exchange their stocks at a given price.
are explored by using a mathematical representation called graph, where
nodes are commitments and groups are cycles made by possible relations
between commitments. I largely inspired my work from routing algorithms
used in web routers to make this job.

I can give you more details if you request for it.

To make it real, we need to meet our strengths

If you have a precise knowledge of economic actors that would accept to
pay for the subscription on this "barter market place", please contact

It's not a single sofware programmer that will settle a barter market
place trusted by a community of financial actors, where economic assets
are exchanged with qualified security requirements. We need several
steps to make it available.

The first step is the coding of an online demonstrator to make
the proof that the concept is operational. This system is not hardly
secured nor ergonomic, but allows a participant to subscribe and login,
deposit the description of stocks he owns, deposit unilateral
commitments to prodive such stock in exchange of an other at such
and where he can find draft barter contracts immedialty. I commit to
make it for the 1st of January 2007 , if I receive a salary of 20 000$
before 15 th of October, to integrate the model and algorithm on a web

After this first go-nogo step, we need to associate skilled personnals,
good wills, and capital riskers on a large software project to make the
barter market place real. These skills are:
1) advices on management aspects (business plan writing, marketing,
precise definition of needs to be satisfied, ...)
2) a software security expert (ssl, ...)
3) law consultant (contractual relations between participants and with
the market place, ...)
4) software developer to make the site attractive, consider data
integrity aspects, etc.

Please, contact me if you think you have these skills, and interested
join the project.

We will also need the contribution of a community of beta-test users to
improve and detect problems that never appear when the traffic is low
(it is a pragmatic approach that has no theoretic reasons). Please
contact me if you think the community you animate could respond to this

Excuse my poor english. I am waiting for your informations and
propositions to this call directly on the following email.

olivier Chaussavoine.
(e-mail address removed)


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