Economy of Ukraine
Published since September 1958
Login

№ 6/2020

Ekon Ukr. 2020 (6): 73–82
https://doi.org/10.15407/economyukr.2020.06.073

FINANCE. TAXES. CREDIT

УДК 911.32

JEL:

MIRGASAN SEIDZADE MIRHASHIM OGHLU1

1State Customs Committee of Azerbaijan Republic, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/


STATE REGULATION OF PRICES


State regulation of market prices consists in establishing control over them, which is usually carried out in the form of upper and lower price limits. Price ceilings are used by the state to control the cost of production. In principle, the price ceiling limits the production of a particular product. These forced prices are set below the balance market price. Like lower price caps, price ceilings are introduced to control the market and protect consumers. The pricing strategy is to determine the relative price level taking into account the factors of influence and the implementation of the relevant work objectives in certain specific conditions. The pricing strategy provides a systematic reflection of management elements for obtaining a profitable result. These elements include the main objectives: prices (profit growth), the level of relative target value (cost associated with competition or the customer), including internal and external factors that take place in business. With this in mind, the formation of pricing policy in a market economy based on world practice is considered.


Keywords:price control; lower price limit; upper price limit; government intervention in price formation

Article original in Russian (pp. 73 - 82) DownloadDownloads :117
The article was received by the Editorial staff on May 18 , 2020

References

1. Tregarthen H.D., Rittenberg L. Macroeconomics. MacMillian.

2. Millard P., Gallegos V.K. Politics & Economics: Price Caps Ail Venezuelan Economy. The Wall Street Journal, February 15, 2006.

3. Simon R. Chavez Threatens to Jail Price Control Violators. The New York Times, February 17, 2007.

4. Kienzler M., Kowalkowski B.J. Pricing strategy: A review of 22 years of marketing research. Journal of Business Research, Vol. 78, 2017, pp. 101-110.
doi.org/10.1016/j.jbusres.2017.05.005

5. Allahverdiyev A., Kafarov K., Ahmedov A. State Regulation of National Economy. Baku, University of Economic, 2007 [in Russian].

6. Alekperova F., Nuralieva R., Abbasova N., Kuliev K. Price Formation. Baku, ASOA, 2015 [in Russian].