# pricing mechanism Summary::I use the term pricing mechanism to refer to the process by which market prices are established. I use the term pricing mechanism to refer to the process by which market prices are established. This mechanism varies from good to good and it reacts quite differently on subjected to outside intervention. I advocate for an unhampered market in which prices emerge as a result of individual transactions. This should lead to far more efficient allocation of resources than any that are controlled by any central authority. **Pricing mechanisms** — particularly those based on [[Money Prices]] — perform a critical function in the transfer of market information. We will examine market pricing and how flexible prices facilitate dynamic markets. # References / Links