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 ?
While part of this phenomenal increase in the circular debt represents an increase in installed capacity of the system, a large part represents the World Bank's ideological and quixotic tilting at the administered price windmills.
The government administered price has increased the procurement of ethanol by Public Sector OMCs from 38 crore litre in year 2013-14 to estimated 140 crore litre in 2017-18.
MPS is measured under the AA by multiplying the gap between the current year "applied administered price" (AAP) and a "fixed external reference price" (FERP) by the "quantity of production eligible to receive the applied administered price" (Annex 3 of the AA).
Administered price inflation excluding petrol remained elevated at 8.4 per cent in the second half of 2015, from an average of 6.5 per centin the first half of the year.
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.
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.
No administered price system of this complexity can accurately communicate real-world supply conditions.
"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.
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.
Additional adverse effects stemmed from administered price dynamics and from the unfavourable influences on agri-food prices of adverse shocks on specific domestic and international markets.