The Pricing System is a Scientific Mystery

“At the heart of economics is a scientific mystery: How is it that
the pricing system accomplishes the world’s work without
anyone being in charge?
. . . None of us could have invented it, and its operation
depends in no way on anyone’s comprehension or
understanding of it . . .
The pricing system—how is order produced from freedom of
choice?—is a scientific mystery as deep, fundamental and
inspiring as that of the expanding universe or the forces that
bind matter.”

Vernon Smith

1982. “Microeconomic systems as an experimental science.”
American Economic Review, Vol. 72, No. 4: 923-955.

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