That is not quite it - in a relatively efficient market with numerous transactions, price can be a good indicator of value. Basically: "This store is busy selli

That is not quite it - in a relatively efficient market with numerous transactions, price can be a good indicator of value. Basically: "This store is busy selling lots of shoes, and apparently a bunch of people are buying them, so they must be worth the price." I do this sometimes with cheaper stuff that I don't know much about. E.g. A shovel or something. I don't know much about shovels, but I know I want a good one. So I will be biased toward the more expensive shovel on the rack, assuming I can afford it. If it wasn't better, then presumably all the people that really know about shovels wouldn't buy it, so then it wouldn't be for sale. Anyway, the logic here isn't perfect obviously, but still makes reasonable sense and works out okay for stuff you can easily afford and don't know much about.