Just Price in the Markets: A History

The concept of a "just price" has been debated by philosophers, religious leaders, and economists throughout history, with Aristotle's thinking on usury influencing the idea of pricing well into the Renaissance. Charles R. Geisst's book explores the evolution of this thought, influenced by figures such as Copernicus, Fibonacci, Adam Smith, Marx, Cassel, and Keynes, and charts parallel developments in European and Islamic notions of fair pricing. Today, pricing is seen as an economic inevitability, but Geisst argues that the idea of a just price was once a moral concept.

Format: Hardback
Length: 280 pages
Publication date: 10 October 2023
Publisher: Yale University Press

The concept of a fair price has been a central theme in market interactions since the time of Aristotle. Throughout history, philosophers, religious leaders, and economists have grappled with this question, seeking to establish a standard that would govern the exchange of goods and services. In this essay, we will explore the evolution of the idea of a just price, from its ancient roots to the present day.

Aristotle's Perspective:
Aristotle, a Greek philosopher, believed that money was a means of exchange, not a source of wealth. He argued that usury, or charging interest on loans, was unethical and should be prohibited. This belief had a significant impact on the concept of pricing in the ancient world. According to Aristotle, money should be used to facilitate trade and promote the well-being of society, rather than to generate profit.

Renaissance and the Shift:
As trade expanded across Europe and the Middle East, the strictures placed on pricing by Aristotelian thinking began to loosen. Roman and common-law conceptions of value and interest began to take precedence, and the idea of a just price began to evolve. Figures such as Copernicus, Fibonacci, Adam Smith, Marx, Cassel, and Keynes all contributed to this evolution, shaping the way we think about pricing today.

The Economic Perspective:
In the modern era, pricing is often seen as an economic inevitability, dictated by the laws of supply and demand. However, this perspective is relatively recent. Prior to the Industrial Revolution, the idea of a just price was primarily a moral concept, rooted in the belief that fair pricing should benefit both buyers and sellers.

The Evolution of European and Islamic Ideas:
Geisst's book, "The Idea of a Just Price," traces the evolution of the idea of a just price in Europe and the Middle East, highlighting the parallel developments in European and Islamic notions of fair pricing. He argues that the concept of a just price was once a moral imperative, long before it became an economic one.

Conclusion:
The concept of a just price has a rich and complex history, shaped by a variety of philosophical, religious, and economic perspectives. From Aristotle's belief that money should be used for the common good to the modern economic perspective that emphasizes supply and demand, the idea of a fair price has evolved significantly. While pricing is now seen as an economic necessity, its roots in moral principles remain important. As we navigate the complex world of market interactions, it is essential to consider the ethical implications of pricing and strive for a system that promotes fairness and sustainability.

Weight: 530g
Dimension: 244 x 165 x 25 (mm)
ISBN-13: 9780300268331