I remember reading in The Sensory Order how the brain, upon observing an object or phenomenon, attempts to classify it according to its theories of operation. Hayek would repeatedly mention that this happens not only in humans, but also in “higher-order animals.” I thought that this description was curious, especially because (if I recall) he noted that it might be possible for these higher-order animals to perform functions such as trade.
Well, if my memory of Hayek’s writing is correct, it seems that he was right on that. Monkeys, it seems, appear to understand the idea of trade, but more importantly, they also seem to understand the concept of monopoly prices.
