---
entity_slug: market_price_adjustment_mechanism
evaluator: null
evaluated_at: '2026-02-23T05:46:26.379686'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly describes a specific mechanism of price fluctuation
    around natural prices based on supply and demand variations. It avoids circularity
    and captures a distinct economic process, though it could be slightly more precise
    about the timeframes involved.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text, particularly his discussions
    of how market prices gravitate toward natural prices through supply and demand
    adjustments. Smith explicitly describes this self-regulating mechanism throughout
    The Wealth of Nations.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate for this entity, as it
    deals with the fundamental mechanics of how prices are determined in market transactions.
    This is core exchange theory rather than production, distribution, or consumption.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to VSM System 2 (coordination/anti-oscillation)
    as it describes how markets naturally dampen price oscillations and coordinate
    resource allocation. It also has elements of S3 (internal regulation) in its self-correcting
    function.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides substantial explanatory power by illuminating the
    fundamental mechanism through which markets achieve efficiency without central
    planning. It explains the structural relationship between temporary imbalances
    and price corrections that underlies Smith's broader economic theory.
---

# Evaluation: Market Price Adjustment Mechanism

## definition_precision — 4.0 / 5.0

The definition clearly describes a specific mechanism of price fluctuation around natural prices based on supply and demand variations. It avoids circularity and captures a distinct economic process, though it could be slightly more precise about the timeframes involved.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text, particularly his discussions of how market prices gravitate toward natural prices through supply and demand adjustments. Smith explicitly describes this self-regulating mechanism throughout The Wealth of Nations.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate for this entity, as it deals with the fundamental mechanics of how prices are determined in market transactions. This is core exchange theory rather than production, distribution, or consumption.

## vsm_relevance — 4.0 / 5.0

This entity maps well to VSM System 2 (coordination/anti-oscillation) as it describes how markets naturally dampen price oscillations and coordinate resource allocation. It also has elements of S3 (internal regulation) in its self-correcting function.

## explanatory_value — 5.0 / 5.0

This entity provides substantial explanatory power by illuminating the fundamental mechanism through which markets achieve efficiency without central planning. It explains the structural relationship between temporary imbalances and price corrections that underlies Smith's broader economic theory.
