Theory of Captured Inflation
A Theoretical Model of Market Power, Control Gaps, and Asymmetric Pricing
Conventional macroeconomic models often treat price inflation as a uniform monetary or supply-side phenomenon. The Theory of Captured Inflation applies Persistence Science to economic structures, demonstrating how price surges emerge when market actors leverage structural position to capture economic surplus and alter system control mechanisms.
Odero Captured Inflation Equation
$$\pi_{\text{captured}} = f\left( C(I)_{\text{monopoly}}, \, \Delta E_{\text{liquidity}}, \, G_{\text{capture}} \right)$$
Quantifying asymmetric price dynamics through Control Power ($C(I)$), Liquidity Flow ($\Delta E$), and the Odero Capture Gap ($G_{\text{capture}}$).
Systemic Mechanics
The model outlines how systemic decay ($D$) manifests within financial and resource distribution networks:
- The Odero Capture Gap ($G_{\text{capture}}$): The structural divergence between cost of production and realized market pricing created through informational control and market dominance.
- Asymmetric Price Transmission: Dominant market entities rapidly pass cost increases forward while absorbing efficiency gains, distorting system balance.
- Persistence Breakdown: When captured inflation exceeds network operational capacity ($\pi_{\text{captured}} > \Omega$), broader economic instability and institutional degradation ensue.
Core Formulations
Odero Capture Gap
$$G_{\text{capture}} = P_{\text{market}} - C_{\text{marginal}}$$
Network Stability Ratio
$$\Omega_{\text{econ}} = \frac{C(I)_{\text{regulatory}} \cdot E_{\text{capital}}}{D_{\text{friction}}}$$