Glossary/Administered Pricing

Glossary | Concepts | Administered Pricing

'House' Definition

Administered pricing refers to the practice where firms set prices based on costs, markups, and strategic goals rather than short-term supply and demand changes. It is common in industries with significant market power, where prices remain stable despite market fluctuations.

References

• Robinson, J. (1969). The Economics of Imperfect Competition. Macmillan.