the logic of price theory has always been what attracted me to certain arguments, and dissuaded me from others. Whatever the problem, I think in terms of 3 P's and 3 I's --- property, prices, profit/loss, and the relationship to incentives, information, and innovation. There is a hard logic of price theory --- the relationship between the underlying facts of tastes, technology and resource availability and the induced manifestations in relative prices and profit and loss statements. The market guides and the market weeds out. And there is a soft logic of price theory --- the multiplicity of margins on which competition takes place, and the dynamics adjustment processes guided by relative prices and the entrepreneurial pursuit of profit. The market guides and the market weeds out.
Peter Boettke
Maishttp://www.coordinationproblem.org/2013/08/abct-providing-the-missing-gap.html
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