jueves, 28 de julio de 2016

Administered Prices - Mark up pricing

"An administered price or mark-up price is as follows:

(1) a price set by businesses through their cost accounting conventions in an ex ante manner before transactions take place, on the basis of total average unit costs plus a profit mark-up, at a given, estimated, projected or target quantity of output or level of sales (from which of course the actual quantity of output produced or sold in a given time period might differ);

(2) a price that is generally inflexible with respect to demand, but tends to change – though by no means necessarily or universally – when total average unit costs change or when the business wants to change its profit mark-up;

(3) a price that is not governed by supply and demand dynamics in the usual economics sense, and which is not adjusted towards market clearing levels to create supply and demand equilibrium, and

(4) a price that is usually constrained by competition with other mark-up pricing businesses and often a price leader, and that will not be set at a level so high that it is unreasonable."[2]

[2] Rothbard’s Non-Refutation of Administered Prices

Lee on the Three Types of Mark-up Prices

"Mark-up prices are set by businesses through their cost accounting conventions in an ex ante manner before transactions take place, on the basis of
(1) total average unit costs plus
(2) a profit mark-up, at a given, estimated
(3) projected or target quantity of output or level of sales (from which of course the ex post or actual quantity of output produced or sold in a given time period might differ).

Empirical evidence shows us that mark-up prices are generally inflexible with respect to demand, but tend to change – though it is by no means a necessary or universal process – when total average unit costs change or when the business wants to change its profit mark-up." [1]

[1] Mark-up Pricing in 21 Nations and the Eurozone: the Empirical Evidence

Two Marketing Studies on US Administered Prices

Administered Prices in the Eurozone: Some Empirical Data 

Administered Pricing in the United Kingdom

Downwards Rigidity of Prices and Mark-up Pricing

Post Keynesian Price Theory 101 (Teoría - evidencia empírica - Galbraith - en contra de los austríacos)

 

 

 

No hay comentarios:

Publicar un comentario