administered price

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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 ?
However, the large increase in wages and salaries in the revised 2015 budget and lower administered prices have boosted incomes.
The bulk of the monthly developments were driven by the upward adjustments in administered prices, particularly tobacco, in addition to supply bottlenecks related to the distribution of butane cylinders.
The Government ever since assuming responsibilities embarked upon a process of deeprooted economic reforms, such as tax measures and adjustment in administered prices, without which meaningful hope for economic revival was not possible, he added.
Although these issues have played themselves out, inflation is being pushed higher by increases in administered prices, reflecting efforts to ease fiscal challenges.
Within few days of presenting the first budget in June 2013, the Government introduced deeprooted economic reforms, such as tax measures and adjustment in administered prices, without which meaningful hope for economic revival was not possible" Dar told a big gathering of students and faculty members of John Hopkins University (USA) on the topic "Pakistan's Economic Recovery and Its Emerging Role in the Region".
She said, in a country of the size of India with 60 per cent of the population dependent on a relatively unremunerative agriculture sector, the country cannot give up administered prices.
The main reason for this volatility is unexpected movements in food prices and changes in administered prices," the central bank observed.
By contrast to the above disinflationary factors, the upward revision of some administered prices in Serbia, notably electricity, will produce inflationary pressures.
According to the central bank, the inflation outlook will be determined by suppressed inflation being released through revisions in administered prices as well as the recent depreciation of the rupee.
Although the government has made a firm commitment to fiscal consolidation, it is an election year and it may not be easy for the government to raise administered prices closer to the election.
Abheek Barua, Chief Economist, HDFC Bank, said, "Notwithstanding moderation in core inflation risks remain from sectoral demand-supply mismatches and correction in administered prices as well as their second round effects.
Administered prices also ensure that international health-spending comparisons fail to accurately reflect the actual resource use, especially in countries where price controls produce shortages that result in costly waiting lists, bribes, and other informal payments that do not appear in official statistics.