Price - Revision history

ArchiveBot: Repoint 3 dead mises.org links to the archived original (automated; see Austrian Economics Wiki:Link repointing)

2026-08-16T04:22:42Z

Repoint 3 dead mises.org links to the archived original (automated; see Austrian Economics Wiki:Link repointing)

← Older revision		Revision as of 04:22, 16 August 2026
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	People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now, as a rule, [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [https://~~mises.~~freecapitalists.org/~~humanaction~~/~~chap16sec1.asp~~ "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>		People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now, as a rule, [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [https://freecapitalists.org/books/human-action/read/chapter-xvi-prices/ "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>

	==Market price==		==Market price==
	A market price refers to the special conditions of a concrete act of exchange (of two individuals, that exchanged definite quantities of two definite goods at a definite place and at a definite date). In the end, it is determined by [[value]] judgments of the individuals involved.		A market price refers to the special conditions of a concrete act of exchange (of two individuals, that exchanged definite quantities of two definite goods at a definite place and at a definite date). In the end, it is determined by [[value]] judgments of the individuals involved.

	A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [https://~~mises.~~freecapitalists.org/~~humanaction~~/~~chap16sec13.asp~~ "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>		A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [https://freecapitalists.org/books/human-action/read/chapter-xvi-prices/ "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>

	==Prices as information==		==Prices as information==
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	==Links==		==Links==
	* The [[Wikipedia:Price\|Wikipedia]] page on price		* The [[Wikipedia:Price\|Wikipedia]] page on price
	* [https://~~mises.~~freecapitalists.org/~~humanaction~~/~~chap16sec1.asp~~ The Pricing Process], [[Human Action]]		* [https://freecapitalists.org/books/human-action/read/chapter-xvi-prices/ The Pricing Process], [[Human Action]]
	* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]		* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]
	* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]		* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]
	[[Category:Economic concepts]]		[[Category:Economic concepts]]

ArchiveBot: Repoint 5 dead mises.org links to the archived original (automated; see Austrian Economics Wiki:Link repointing)

2026-08-16T04:09:29Z

Repoint 5 dead mises.org links to the archived original (automated; see Austrian Economics Wiki:Link repointing)

← Older revision		Revision as of 04:09, 16 August 2026
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	People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now, as a rule, [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [~~http~~://mises.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>		People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now, as a rule, [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [https://mises.freecapitalists.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>

	==Market price==		==Market price==
	A market price refers to the special conditions of a concrete act of exchange (of two individuals, that exchanged definite quantities of two definite goods at a definite place and at a definite date). In the end, it is determined by [[value]] judgments of the individuals involved.		A market price refers to the special conditions of a concrete act of exchange (of two individuals, that exchanged definite quantities of two definite goods at a definite place and at a definite date). In the end, it is determined by [[value]] judgments of the individuals involved.

	A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [~~http~~://mises.org/humanaction/chap16sec13.asp "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>		A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [https://mises.freecapitalists.org/humanaction/chap16sec13.asp "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>

	==Prices as information==		==Prices as information==
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	This includes interest rates on various loans. In particular, the market [[interest rate]] coordinates the "intertemporal" (i.e., across-time) activities of investors, businesses, and consumers. If consumers become more future oriented and want to reduce consumption in the near term in order to provide more for later years, what happens in the free market is that the increased savings push down interest rates, which then signal entrepreneurs to borrow more and invest in longer projects. Thus resources (such as labor, oil, steel, and machine time) get redirected away from present goods, like TVs and sports cars, and the freed-up resources flow into capital or investment goods like tractors and cargo ships.		This includes interest rates on various loans. In particular, the market [[interest rate]] coordinates the "intertemporal" (i.e., across-time) activities of investors, businesses, and consumers. If consumers become more future oriented and want to reduce consumption in the near term in order to provide more for later years, what happens in the free market is that the increased savings push down interest rates, which then signal entrepreneurs to borrow more and invest in longer projects. Thus resources (such as labor, oil, steel, and machine time) get redirected away from present goods, like TVs and sports cars, and the freed-up resources flow into capital or investment goods like tractors and cargo ships.

	If the interest rates are artificially reduced below their free-market level, it sends a false message to entrepreneurs. Firms begin expanding as if consumers have increased their savings, but in fact consumers have reduced their savings (due to the lower interest rates). Businesses that churn out durable goods, such as furnaces, cargo ships, and houses will find business booming, because these sectors respond positively to low interest rates.<ref name="Murphy_information">Robert P. Murphy. [~~http~~://mises.org/daily/3387 "Austrians Can Explain the Boom and the Bust"], Mises Daily, March 2009, referenced 2010-04-27.</ref>		If the interest rates are artificially reduced below their free-market level, it sends a false message to entrepreneurs. Firms begin expanding as if consumers have increased their savings, but in fact consumers have reduced their savings (due to the lower interest rates). Businesses that churn out durable goods, such as furnaces, cargo ships, and houses will find business booming, because these sectors respond positively to low interest rates.<ref name="Murphy_information">Robert P. Murphy. [https://mises.freecapitalists.org/daily/3387 "Austrians Can Explain the Boom and the Bust"], Mises Daily, March 2009, referenced 2010-04-27.</ref>

	==Money prices==		==Money prices==
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	If, at a set price, a producer cannot make a profit because not enough people are willing to buy his product, he will be forced to lower the price to boost turnover (and may also need to adjust his costs to make a profit). [[Profit]] is an indication that both producers and consumers have improved their well-being.		If, at a set price, a producer cannot make a profit because not enough people are willing to buy his product, he will be forced to lower the price to boost turnover (and may also need to adjust his costs to make a profit). [[Profit]] is an indication that both producers and consumers have improved their well-being.

	When a good makes a profit at a particular price, then it is a signal to entrepreneurs that consumers are willing to support the product at the set price. Prices, therefore, are an important factor in establishing how producers employ their resources.<ref name="Shostak_prices">Frank Shostak. [~~http~~://mises.org/story/931 "The Limits of Supply and Demand"], ''[[Mises Institute]]'', posted on 2002-09-04, referenced 2009-05-14.</ref>		When a good makes a profit at a particular price, then it is a signal to entrepreneurs that consumers are willing to support the product at the set price. Prices, therefore, are an important factor in establishing how producers employ their resources.<ref name="Shostak_prices">Frank Shostak. [https://mises.freecapitalists.org/story/931 "The Limits of Supply and Demand"], ''[[Mises Institute]]'', posted on 2002-09-04, referenced 2009-05-14.</ref>

	==Price controls==		==Price controls==
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	==Links==		==Links==
	* The [[Wikipedia:Price\|Wikipedia]] page on price		* The [[Wikipedia:Price\|Wikipedia]] page on price
	* [~~http~~://mises.org/humanaction/chap16sec1.asp The Pricing Process], [[Human Action]]		* [https://mises.freecapitalists.org/humanaction/chap16sec1.asp The Pricing Process], [[Human Action]]
	* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]		* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]
	* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]		* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]
	[[Category:Economic concepts]]		[[Category:Economic concepts]]

Pesterbot: /* Links */External Links to Links, replaced: ==External links== → ==Links==

2011-06-21T19:12:16Z

Links: External Links to Links, replaced: ==External links== → ==Links==

← Older revision		Revision as of 19:12, 21 June 2011
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	{{Reflist}}		{{Reflist}}

	==~~External links~~==		==Links==
	* The [[Wikipedia:Price\|Wikipedia]] page on price		* The [[Wikipedia:Price\|Wikipedia]] page on price
	* [http://mises.org/humanaction/chap16sec1.asp The Pricing Process], [[Human Action]]		* [http://mises.org/humanaction/chap16sec1.asp The Pricing Process], [[Human Action]]

IsmAvatar: Grammar, missing commas

2010-11-09T21:18:15Z

Grammar, missing commas

← Older revision		Revision as of 21:18, 9 November 2010
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	People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now as a rule [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [http://mises.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>		People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now, as a rule, [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [http://mises.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>

	==Market price==		==Market price==

Forgottenman: /* External links */Category:Economical Concepts --> Category:Economic concepts using AWB

2010-11-09T18:02:28Z

External links: Category:Economical Concepts --> Category:Economic concepts using AWB

← Older revision		Revision as of 18:02, 9 November 2010
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	* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]		* [http://mises.org/rothbard/mes/chap4a.asp Money Prices] in [[Man, Economy and State]]
	* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]		* [http://www.econlib.org/library/Enc/PriceControls.html Price controls]
	[[Category:~~Economical Concepts~~]]		[[Category:Economic concepts]]

Pestergaines: 14 revisions: Importing pages from Autrian Economics Wiki.

2010-11-06T12:38:08Z

14 revisions: Importing pages from Autrian Economics Wiki.

← Older revision		Revision as of 12:38, 6 November 2010
(No difference)

0.0.0.0 at 21:27, 13 August 2010

2010-08-13T21:27:16Z

← Older revision		Revision as of 21:27, 13 August 2010
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	People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now as a rule [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [http://mises.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>		People [[Trade\|exchange]] only if each party values what they receive more than what they give away. The '''price''' is the exchange ratio between the exchanged goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now as a rule [[money]] prices.<ref name="Mises_prices">Ludwig von Mises. [http://mises.org/humanaction/chap16sec1.asp "1. The Pricing Process"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref><ref name="Rothbard_medium">Murray N. Rothbard [http://mises.org/rothbard/mes/chap2b.asp "4. Terms of Exchange"] Chapter 2 - Direct exchange, ''[[Man, Economy and State]]'', online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."</ref>

Pestergaines: A little on prioces as information.

2010-04-27T11:58:43Z

A little on prioces as information.

← Older revision		Revision as of 11:58, 27 April 2010
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	A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [http://mises.org/humanaction/chap16sec13.asp "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>		A market price is not derived from the general price structure or from the structure of the prices of a special class of commodities or services. What is called the price structure is an abstract notion derived from the many individual concrete prices. The market does not generate prices of land or motorcars in general nor wage rates in general, but prices for a certain piece of land or a certain car and wage rates for a performance of a certain kind. Things are valued based on their power to remove uneasiness.<ref name="Mises_market_price">Ludwig von Mises. [http://mises.org/humanaction/chap16sec13.asp "13. Prices and Income"], ''[[Human Action]]'', online edition, Chapter XVI. Prices, [[Mises Institute]]. Referenced 2009-05-11}.</ref>

			==Prices as information==
			In a market economy, prices are not arbitrary, but signal real, underlying scarcity and help everyone in the economy adjust his plans in light of reality.

			This includes interest rates on various loans. In particular, the market [[interest rate]] coordinates the "intertemporal" (i.e., across-time) activities of investors, businesses, and consumers. If consumers become more future oriented and want to reduce consumption in the near term in order to provide more for later years, what happens in the free market is that the increased savings push down interest rates, which then signal entrepreneurs to borrow more and invest in longer projects. Thus resources (such as labor, oil, steel, and machine time) get redirected away from present goods, like TVs and sports cars, and the freed-up resources flow into capital or investment goods like tractors and cargo ships.

			If the interest rates are artificially reduced below their free-market level, it sends a false message to entrepreneurs. Firms begin expanding as if consumers have increased their savings, but in fact consumers have reduced their savings (due to the lower interest rates). Businesses that churn out durable goods, such as furnaces, cargo ships, and houses will find business booming, because these sectors respond positively to low interest rates.<ref name="Murphy_information">Robert P. Murphy. [http://mises.org/daily/3387 "Austrians Can Explain the Boom and the Bust"], Mises Daily, March 2009, referenced 2010-04-27.</ref>

	==Money prices==		==Money prices==

Pestergaines: Fixed reference.

2009-09-11T18:13:55Z

Fixed reference.

← Older revision		Revision as of 18:13, 11 September 2009
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	Over the course of history, governments tried many times to regulate prices in some manner, either to set them directly, or by setting minimum and maximum prices.		Over the course of history, governments tried many times to regulate prices in some manner, either to set them directly, or by setting minimum and maximum prices.

	Price controls rarely succeed even for a short time, and have a long record of failing in the long term, with many adverse consequences.<ref name="Schuettinger_Price_controls">Robert L. Schuettinger and Eamonn F. Butler. "[[Forty Centuries of Wage and Price Controls]]", Chapter 19 - The Economic Effects Of Wage and Price Controls, p. 139-145, referenced 2009-08-09.</ref>		Price controls rarely succeed even for a short time, and have a long record of failing in the long term, with many adverse consequences.<ref name="Schuettinger_Price_controls">Robert L. Schuettinger and Eamonn F. Butler. "[[Forty Centuries of Wage and Price Controls]]", Chapter 19 - The Economic Effects Of Wage and Price Controls, p. 139-145, referenced 2009-09-11.</ref>

	==References==		==References==

Pestergaines: Added section on Price controls.

2009-09-11T18:10:44Z

Added section on Price controls.

← Older revision		Revision as of 18:10, 11 September 2009
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	When a good makes a profit at a particular price, then it is a signal to entrepreneurs that consumers are willing to support the product at the set price. Prices, therefore, are an important factor in establishing how producers employ their resources.<ref name="Shostak_prices">Frank Shostak. [http://mises.org/story/931 "The Limits of Supply and Demand"], ''[[Mises Institute]]'', posted on 2002-09-04, referenced 2009-05-14.</ref>		When a good makes a profit at a particular price, then it is a signal to entrepreneurs that consumers are willing to support the product at the set price. Prices, therefore, are an important factor in establishing how producers employ their resources.<ref name="Shostak_prices">Frank Shostak. [http://mises.org/story/931 "The Limits of Supply and Demand"], ''[[Mises Institute]]'', posted on 2002-09-04, referenced 2009-05-14.</ref>

			==Price controls==
			{{Main\|Price controls}}

			Over the course of history, governments tried many times to regulate prices in some manner, either to set them directly, or by setting minimum and maximum prices.

			Price controls rarely succeed even for a short time, and have a long record of failing in the long term, with many adverse consequences.<ref name="Schuettinger_Price_controls">Robert L. Schuettinger and Eamonn F. Butler. "[[Forty Centuries of Wage and Price Controls]]", Chapter 19 - The Economic Effects Of Wage and Price Controls, p. 139-145, referenced 2009-08-09.</ref>

	==References==		==References==