Price Theory Quotes

Prior to the early 1960s, economic theorists rarely constructed models customized to capture unique institutions or specific market characteristics.

Most investors give too much credence to the theory that prices are rational; they presume that a market collapse must have been justified by serious economic trouble.

Economics is not an attempt to generalize human desires or human behavior; but to generalize the phenomena of price.

Price, taken by itself, is nothing but the monetary expression of value.

Economic engineering is about the design and analysis of frameworks for achieving specific economic objectives.

'Perfect competition' is considered both the ideal and the default state in Economics 101. So-called perfectly competitive markets achieve equilibrium when producer supply meets consumer demand.

I entered economics because of a course I took on 'information economics,' which I found fascinating.

The tradition of Chicago price theory is a good one, and it is a low-tech methodology that tries to apply simple economic theory to the world.

The question is really how do we think seriously about this mechanism called a market. It ought to be determining not values but prices.

The concept of a 'just' or 'fair' price is devoid of any scientific meaning; it is a disguise for wishes, a striving for a state of affairs different from reality.

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.

Everything which is demanded is by that fact a good.

I started working and publishing in price theory by 1938.

The eighteenth century discovery that, in an institutional framework that facilitates voluntary exchanges among individuals, this process generates results that might be evaluated positively, produced 'economics,' as an independent academic discipline or science.

There are all sorts of institutions in the economic world which depart from the simple price/market model which I worked on in an earlier incarnation and which has been sort of the mainstream of economic theories since Adam Smith and David Ricardo. There are all sorts of contractual relations between firms and individuals which do not conform to the simple price theory - profit-sharing schemes and so forth - and the explanation for these suddenly became clear. We now understand why these emerged and that they are based on differences in information in the economy.