price

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Price

The value of a thing with real or perceived worth. Price represents the amount of value the market has assigned, fairly or unfairly, to a good or service. Normally, prices are expressed in terms of money, but practices such as countertrade and PIK securities indicate that prices may be expressed in goods: "four chickens for two sheep." Price is a necessary component of trade.

Prices tend to be regulated by the law of supply and demand; that is, a price of a good or service increases with smaller supply and/or greater demand. A corollary to this is the idea that commoditization drives prices down because it increases supply (sometimes vastly) while leaving demand the same. Prices likewise rise when the value of money declines. Governments can and have controlled the prices of certain goods and services by subsidy or decree. This is usually an anti-inflationary measure and tends to distort, rather than eliminate, the law of supply and demand. It is thus not generally sustainable as a mechanism for controlling price.

price

The dollar amount at which a security trades. Stocks are nearly always quoted fully (that is, $25 means $25 per share), while bonds are ordinarily quoted as a percentage of par value (that is, 98 represents $980 per $1,000 par bond).

price

the money value of a unit of a GOOD, SERVICE, FINANCIAL SECURITY or ASSET which a buyer is required to pay a seller to purchase the item. Usually the price of a product is fixed by the seller in advance on the basis of the costs of producing and selling the product and the seller's desired profit margin. In other cases, however, prices are variable, being determined by prevailing demand and supply conditions as with the sale, for example, of a STOCK or SHARE, a house or items sold at an auction.

Because a purchase involves a money outlay on the part of buyers who operate within a budget constraint, the price of a product is an important factor in the buying decision. It may well be the paramount consideration in many cases, but for some purchases other elements in the MARKETING MIX (product quality and performance etc.) may be equally if not more important. Thus, although many products (especially COMMODITY-TYPE PRODUCTS) tend to be sold at low, competitive prices, many others can be sold at higher prices, providing customers with a variety of price-quality trade-offs and other product attributes. See MARKET STRUCTURE, MONOPOLY, BUYER'S MARKET, SELLER'S MARKET, PRICING, PRICING OBJECTIVES, PRICING METHODS, FOUR P'S OF MARKETING.

price

the money value of a unit of a GOOD, SERVICE, ASSET or FACTOR INPUT. In some markets (for example, see PERFECT COMPETITION), price will be determined entirely by the forces of DEMAND and SUPPLY. By contrast, in other markets (for example, MONOPOLY markets) powerful suppliers have considerable discretion over the price that they charge. In certain circumstances, prices may be subjected to governmental PRICE CONTROL or regulated by means of PRICES AND INCOMES POLICY. See also EQUILIBRIUM MARKET PRICE, ADMINISTERED PRICE.

price

An amount of money exchanged for something of value.

References in periodicals archive ?
Ivanova-Stenzel and Kroger (2008) explore a temporary buy price both theoretically and experimentally.
When bidders are risk neutral, a temporary buy price raises strictly less revenue than the same auction run without a buy price.
3) Mathews (2004) examines a temporary buy price theoretically and finds that when the seller and/or the bidders are time impatient, a seller can be motivated to choose a buy price that is exercised with positive probability by the bidders.
This study is an exploration into the revenue, utilization, bid timing, and efficiency differences that arise when using a permanent or temporary buy price and how these differences are affected by the presence or absence of proxy bidding in a controlled laboratory setting.
and permanent buy price in a single institution that captured many of the characteristics of both eBay and Yahoo
After observing the results from the first set of experiments, we decided to further explore the effects of a buy price in a setting that more closely matches that of the institution used by eBay, the current market leader in the United States.
He maintains that eBay's use of proxy bidding as well as a temporary buy price are both efforts to attract more buyers (and in turn more sellers) to the site by encouraging early bidding.
In four of the sessions, the buy price was permanent (PERM) and remained available throughout each auction.
The three 10-period blocks used in the Treatment Stage allow the high, medium, and low buy price to be offered to each value pairing.
The effects of a buy price on revenue will certainly be important to sellers, and therefore to an auction house that wishes to attract more sellers.
Figures 1 and 2 present empirical density functions of all the revenue data for all buy price types, levels, and institutions.
Table 3 reports six fixed-effects regressions (each row in the table is a separate regression) with comparisons of each of the buy price types to the baseline case, as well as a comparison of the two buy price types.