3 ms·
One thing oft asserted in economics textbooks is price as an "information signal." That is, if we step back from its various origins that tie it to land, labor,
by chipsy 11y ago
One thing oft asserted in economics textbooks is price as an "information signal." That is, if we step back from its various origins that tie it to land, labor, and energy, pricing has similar utility to any other valuation method. A person using extremely expensive equipment that is owned by an institution cannot value it within their individual budget, even though it has a "price." The cost of access is the membership in that institution, which is not the same and may be priced in terms of service hours or political weight.
As our economy hits more extremes of abundance vs. scarcity, decoupling of value mechanisms is a likely future step. Mainstream economic theory already has some accomodations for types of goods and externalities - it's not too radical to imagine a theory that recontextualizes them.