---
entity_slug: market_regulation_of_prices
evaluator: null
evaluated_at: '2026-02-23T05:48:06.453515'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes market-driven price determination
    from government price controls, capturing a specific mechanism rather than a vague
    concept. It could be slightly more precise about what constitutes "natural process"
    but otherwise avoids circularity.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text, particularly his discussions
    in Book I about how markets naturally establish prices through supply and demand
    interactions. Smith explicitly contrasts market mechanisms with artificial price
    regulations throughout his work.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Exchange" is the correct domain placement since price regulation through
    market forces is fundamentally about the mechanisms of trade and value determination
    between parties. This is a core exchange process rather than production, distribution,
    or consumption.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S2 (coordination/anti-oscillation) as it describes
    how markets coordinate pricing without central control, and partially to S3 (internal
    regulation) as a self-regulating mechanism. The market's price-setting function
    serves clear cybernetic coordination roles.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: "This entity illuminates a fundamental mechanism in Smith's economic\
    \ theory\u2014how decentralized market forces can achieve coordination without\
    \ central planning. It explains the structural relationship between individual\
    \ exchanges and system-wide price stability."
---

# Evaluation: Market Regulation Of Prices

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes market-driven price determination from government price controls, capturing a specific mechanism rather than a vague concept. It could be slightly more precise about what constitutes "natural process" but otherwise avoids circularity.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text, particularly his discussions in Book I about how markets naturally establish prices through supply and demand interactions. Smith explicitly contrasts market mechanisms with artificial price regulations throughout his work.

## domain_placement — 5.0 / 5.0

"Exchange" is the correct domain placement since price regulation through market forces is fundamentally about the mechanisms of trade and value determination between parties. This is a core exchange process rather than production, distribution, or consumption.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S2 (coordination/anti-oscillation) as it describes how markets coordinate pricing without central control, and partially to S3 (internal regulation) as a self-regulating mechanism. The market's price-setting function serves clear cybernetic coordination roles.

## explanatory_value — 5.0 / 5.0

This entity illuminates a fundamental mechanism in Smith's economic theory—how decentralized market forces can achieve coordination without central planning. It explains the structural relationship between individual exchanges and system-wide price stability.
