---
entity_slug: natural_price_as_central_price
evaluator: null
evaluated_at: '2026-02-23T06:00:22.408818'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures the gravitational metaphor Smith uses
    and distinguishes natural price as an equilibrium point rather than just another
    price level. The concept of prices "gravitating" toward this central point is
    precise and non-circular.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity directly quotes Smith's characterization of natural price
    as "the central price, to which the prices of all commodities are continually
    gravitating" from Book I, Chapter 7. The gravitational metaphor is explicitly
    Smith's own analytical framework.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: Placement in the "Exchange" domain is entirely appropriate since this
    concept deals with how market prices move relative to an equilibrium point through
    exchange mechanisms. This is fundamentally about price formation and market dynamics.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This concept has some relevance to S2 (coordination/anti-oscillation)
    as it describes a stabilizing mechanism that prevents prices from oscillating
    wildly, but it's more of a market outcome than a distinct systemic function. The
    gravitational tendency could be seen as an emergent property rather than a specific
    VSM system.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "This entity illuminates a key mechanism in Smith's price theory\u2014\
    how markets self-regulate through gravitational forces toward equilibrium. It\
    \ explains the structural relationship between temporary market fluctuations and\
    \ underlying economic fundamentals, providing genuine analytical insight into\
    \ market dynamics."
---

# Evaluation: Natural Price As Central Price

## definition_precision — 4.0 / 5.0

The definition clearly captures the gravitational metaphor Smith uses and distinguishes natural price as an equilibrium point rather than just another price level. The concept of prices "gravitating" toward this central point is precise and non-circular.

## source_grounding — 5.0 / 5.0

This entity directly quotes Smith's characterization of natural price as "the central price, to which the prices of all commodities are continually gravitating" from Book I, Chapter 7. The gravitational metaphor is explicitly Smith's own analytical framework.

## domain_placement — 5.0 / 5.0

Placement in the "Exchange" domain is entirely appropriate since this concept deals with how market prices move relative to an equilibrium point through exchange mechanisms. This is fundamentally about price formation and market dynamics.

## vsm_relevance — 3.0 / 5.0

This concept has some relevance to S2 (coordination/anti-oscillation) as it describes a stabilizing mechanism that prevents prices from oscillating wildly, but it's more of a market outcome than a distinct systemic function. The gravitational tendency could be seen as an emergent property rather than a specific VSM system.

## explanatory_value — 4.0 / 5.0

This entity illuminates a key mechanism in Smith's price theory—how markets self-regulate through gravitational forces toward equilibrium. It explains the structural relationship between temporary market fluctuations and underlying economic fundamentals, providing genuine analytical insight into market dynamics.
