administered price

Administered Price

A price dictated by any entity other than market forces. Most of the time, an administered price refers to a price set by a government, but it may also be set by a private company with sufficient control over the market that it can control prices. See also: Monopoly.

administered price

a PRICE for a product which is set and controlled by an individual supplier, a group of suppliers or the government, as opposed to being determined by the free interplay of market forces. See MONOPOLY, CARTEL, PRICE CONTROL, FIXED EXCHANGE RATE.

administered price

  1. a price for a PRODUCT that is set by an individual producer or group of producers. In PERFECT COMPETITION, characterized by many very small producers, the price charged is determined by the interaction of market demand and market supply, and the individual producer has no control over this price. By contrast, in an OLIGOPOLY and a MONOPOLY, large producers have considerable discretion over the prices they charge and can, for example, use some administrative formula like FULL-COST PRICING to determine the particular price charged. A number of producers may combine to administer the price of a product by operating a CARTEL or price-fixing agreement.
  2. a price for a product, or CURRENCY, etc., that is set by the government or an international organization. For example, an individual government or INTERNATIONAL COMMODITY AGREEMENT may fix the prices of agricultural produce or commodities such as tin to support producers’ incomes; under an internationally managed FIXED EXCHANGE-RATE SYSTEM, member countries establish fixed values for the exchange rates of their currencies. See PRICE SUPPORT, PRICE CONTROLS.
References in periodicals archive ?
3 percent y-o-y in October, helped by tighter control over monetary aggregates, imported disinflation, a negative output gap, and a slowdown in administered price hikes.
Administered price inflation excluding petrol remained elevated at 8.
The oil price fall would also have positive impact on the administered price of goods.
A senior power department official said the Union Petroleum Ministry has made it clear that administered price gas cannot be made available to Bawana power plant for the next two years.
86 per cent in April), the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back," he said.
Correspondingly, an administered price cap has to be used as a basis for settlements.
Consistent with expectations, monthly inflation was due mainly to administered price growth - electricity, cigarettes and medicament's, while food prices declined.
Until 2009, India's administered price mechanism price for gas was about one-seventh or one-eighth that of the European standards, UK Heren NBP and the EU cif (measured in dollar/oil tonne equivalent).
In the context of mergers and acquisitions, what is the price that would have to be paid if the acquiring company has to acquire spectrum given to a company at an administered price, which is Rs 1,658 crore, that's one decision that has been taken," Sibal said.
MUSCAT: Producers of animal feed, including poultry feed in the country are eagerly waiting for a government decision on subsidy, in view of administered price for these products.
Subdued growth in private sector credit extension and in money supply, sharply higher than inflation administered price increases, notably electricity and rising fuel costs would combine to impact negatively on consumer disposable income and demand for durable goods.
Though speaking disapprovingly of the increase in petrol prices by Rs5 in a month, the party remained non-committal on whether the policy of administered price mechanism needs a re-look.