Price Dynamics Quotes

The proposition of Mr. Ricardo, which states that a rise in the price of labour lowers the price of a large class of commodities, has undoubtedly a very paradoxical air; but it is, nevertheless, true, and the appearance of paradox would vanish, if it were stated more naturally and correctly.

Prices don't merely reflect what people think things ought to cost today; they also reflect what people expect items to cost tomorrow.

Prices are important not because money is considered paramount but because prices are a fast and effective conveyor of information through a vast society in which fragmented knowledge must be coordinated.

The supply price and the demand price should be roughly the same. You're not supposed to have two different prices. According to economists.

So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.

Supply and demand regulate architectural form.

In a sense, the market, by expecting a fall in prices, discounts that fall and makes it happen right away instead of later. Expectations speed up future price reactions.

But the system of prices ruling the market not only transmits information in the light of which economic agents can mutually adjust their actions, it also provides them with an incentive to exercise economy in terms of money.

Value is consequently the necessary theoretical starting point whence we can elucidate the peculiar phenomenon of prices resulting from capitalist competition.

It's like simulating earthquakes: we can over and over study a bubble, crash, bubble, crash. Then we can see mathematically if there's some regular pattern and what's going on in people's brains when prices are going up and before the crash is happening.

When I first began studying prices, it wasn't a topic that mathematicians were working on. Purely by accident, I saw a set of data on price changes presented in a lecture and realized they behaved similarly to the geometric models I was already studying.

I don't think anybody's really been successful with theorizing about value or creating a price theory.