Administered prices: Difference between revisions
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Means, G. C. 1972. “The Administered Price Thesis Reconfirmed,” American Economic Review 62: 292–306. |
Means, G. C. 1972. “The Administered Price Thesis Reconfirmed,” American Economic Review 62: 292–306. |
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"Mark-up Pricing in 11 Nations and the Eurozone: the Empirical Evidence." Social Democracy for the 21st Century: A Post Keynesian Perspective. Published 2/18/2014. URL : http://socialdemocracy21stcentury.blogspot.pt/2014/02/mark-up-pricing-in-12-nations-empirical.html . Accessed 8/29/15 |
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Revision as of 04:24, 30 August 2015
Administered Prices refer to prices of goods set by the internal pricing structures of firms rather than through supply and demand and predicted by classical economics. Administered prices were first described by institutional economists Gardiner Means and Adolf A. Berle in their 1932 book The Modern Corporation and Private Property. As Means argues in 1972: “Basically, the administered-price thesis holds that a large body of industrial prices do not behave in the fashion that classical theory would lead one to expect. It was first developed in 1934–35 to apply to the cyclical behavior of industrial prices. It specifically held that in business recessions administered prices showed a tendency not to fall as much as market prices while the recession fall in demand worked itself out primarily through a fall in sales, production, and employment.”
Further Reading
Berle, Adolf A. and Gardner C. Means. 1932. The Modern Corporation and Private Property. Macmillan, New York.
Means, G. C. 1992 [1933]. “The Corporate Revolution,” in Frederic S. Lee and Warren J. Samuels (eds.), The Heterodox Economics of Gardiner C. Means: A Collection. M.E. Sharpe, Armonk, N.Y.
Means, G. C. 1935. Industrial Prices and their Relative Inflexibility. US Senate Document no. 13, 74th Congress, 1st Session, Government Printing Office, Washington DC.
Means, G. C. 1936. “Notes on Inflexible Prices,” American Economic Review 26 (Supplement): 23–35.
Means, G. C. 1939–1940. “Big Business, Administered Prices, and the Problem of Full Employment,” Journal of Marketing 4: 370–381.
Means, G. C. 1962. Pricing Power and the Public Interest. Harper and Brothers. New York.
Means, G. C. 1972. “The Administered Price Thesis Reconfirmed,” American Economic Review 62: 292–306.
"Mark-up Pricing in 11 Nations and the Eurozone: the Empirical Evidence." Social Democracy for the 21st Century: A Post Keynesian Perspective. Published 2/18/2014. URL : http://socialdemocracy21stcentury.blogspot.pt/2014/02/mark-up-pricing-in-12-nations-empirical.html . Accessed 8/29/15