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 ?
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.
Consistent with expectations, monthly inflation was due mainly to administered price growth - electricity, cigarettes and medicament's, while food prices declined.
No administered price system of this complexity can accurately communicate real-world supply conditions.
If you have administered price mechanism, which does not take into account the need for ensuring that there should be adequate returns, then obviously expectation that foreign capital will come in or foreign private capital will invest is I think a pipe dream," Saran added.
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.
The Union Petroleum and Natural Gas Minister, Murli Deora assured the Chief Minister Parkash Singh Badal of early clearance for allocation of gas at the Government administered price for its upcoming 1000MW Gas based power project at Ropar.
20 rupees, after the Indian government raised administered price mechanism (APM) gas price to $4.
The hike in the administered price, which applies to the 40 per cent of India's gas output of 140 million standard cubic metres a day (mmscmd) that is sold mainly to power and fertiliser firms, is a key step towards reducing distortions in a market with more than a dozen rates.
However, the rate of decline is being constrained by high and sustained administered price increases and wage settlements in excess of inflation.
Alternatively, under the administered price approach, a conscious effort would have to be made to adjust prices in times of scarcity.