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 ?
On the back of the increases in administered prices, inflation for the electricity, gas and other fuels sub-component jumped by 24 per cent year on year in January, while transportation rose by 10.
The sector has the direct linkage to the dismantling of administered prices in petrol and diesel.
The drop in inflation over the past six months has reflected the unwinding impact of the pound's steep devaluation, hikes in administered prices, and the introduction of a value added tax, all of which came in November 2016.
The drop in inflation over the past six months has reflected the unwinding impact of the pound's steep devaluation, hikes in administered prices and the introduction of a value-added tax, all of which came in November 2016," the report affirmed.
6% in 2018, due to the stable food and administered prices.
He added: "An administrative case was opened against the hotel on the count of illegally overstating administered prices.
This projection is explained by lower than anticipated increase in international oil prices, recent behavior of CPI inflation in June 2017, stable administered prices and lower inflationary expectations.
Inflation rose to around 5 percent in early 2017 due to increases in administered prices for health care and education.
6 per cent in 2015 has resumed an upward trajectory in response to rising food costs and sustained increases in administered prices.
The dynamics of the inflation rate was favorably influenced by the significant deceleration of increases in administered prices and food prices.
Dodd-Frank has introduced a new set of administered prices and credit conditions which has made price adjustments lumpier.
One knows for certain the administered prices of energy are going up with a cut in subsidies, and this would put pressure on inflation.