Friedrich Hayek · Economics

Prices as Information

Hayek’s revelation that a price is not just a number but a signal - a compressed message carrying the knowledge of millions, coordinating an economy no one controls.

What you'll be able to recall

You learned that Hayek saw prices as a communication system. Explain how a price change transmits knowledge and triggers coordinated action without anyone understanding the cause, in your own words.

Leads to Adam Smith.

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