Thus, while they lie at the intersection of the momentary demand and supply schedules; they do not, given the erroneous appraisements of the market participants, clear the market given the original valuations.
Each seller undertakes this appraisement of the underlying market conditions in order to find the price that will maximize the flow of monetary revenue from the stock of horses in his possession.
5) In the analysis above, we assumed that only sellers have perfect knowledge and appraise the underlying market conditions, while buyers make their purchases without engaging in any appraisement.
The reason that it lies at the intersection of both sets of demand and supply schedules is the assumption of perfect knowledge and the resulting correct appraisement of the original valuations by both the sellers.
A final price only emerges when market participants make choices on the basis of a correct appraisement of the prevailing original valuations.
Now, it is true that these prevailing momentary valuations of the sellers contain error, since they are the result of an erroneous appraisement of the underlying original valuations.
15) This, however, is different from the quantity that they planned or that they wished to sell at the price of $30 when they formed their appraisement of market conditions.
Appraisement must be clearly distinguished from valuation.
Appraisement is essentially a judgment of investment worth and, at least in the mind of the entrepreneur, is quantitative.
A common ex ante appraisement for capital goods implicitly requires a static equilibrium in the industries in which the auctioned capital goods are to be employed.
He is not addressing the ex ante appraisement within the context of an entrepreneurial strategy.
And second, it is the entrepreneur's monetary appraisement of an entrepreneurial strategy for the employment of the enterprise's capital goods (Taylor, 1970, p.