Bonus Quotation of the Day…

by Don Boudreaux on January 8, 2017

in Competition, Complexity & Emergence, Prices

… is from page 128 of Israel Kirzner’s brilliant 1985 volume, Discovery and the Capitalist Process (original emphasis):

unknown-3The primary function of the market is not to offer an arena within which market participants can have their decentralized decisions smoothly coordinated through attention to the appropriate list of given prices.  The market’s essential function, rather, is to offer an arena in which market participants, by entrepreneurial exploitation of the profit opportunities offered by disequilibrium prices, can nudge prices in the direction of equilibrium.


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