---
entity_slug: market_price_mechanism
entity_type: Process
vsm_system: S2
type_rationale: The market price mechanism is described as a "natural process" that
  actively adjusts prices and coordinates economic activity over time, making it a
  flow or activity rather than a static entity.
vsm_rationale: This mechanism operates through price signals that balance supply and
  demand to coordinate economic activity, which is the core function of S2 coordination
  systems that provide anti-oscillation and signaling.
classified_at: '2026-02-23T11:13:38.363407'
---

# Classification: Market Price Mechanism

## Entity Type

Process

## VSM System

S2

## Type Rationale

The market price mechanism is described as a "natural process" that actively adjusts prices and coordinates economic activity over time, making it a flow or activity rather than a static entity.

## VSM Rationale

This mechanism operates through price signals that balance supply and demand to coordinate economic activity, which is the core function of S2 coordination systems that provide anti-oscillation and signaling.
