Price Management Research

Analysing its essence, this dissertation makes an inquiry that the price of commodities is currency expression of its value, it belongs to exchange category and the price relations are benefit allocated relations between dealers in the market. Analysing its natmral instinct, as a kind of stimulus factor, price reflects scarcity of resource and which has been determined in the market by means of exchanging information between economic participators, however ,owing to incompleted market such as monopoly, externality and unbalanced information etc., price could not reflect supply-demand relations of the market, benefit and desire of suppliers and consumers truly and exactly so as to deviate from its instinct. Therefore, depending on complete market strength in macro-economic movement will cause economic spasm, it is necessary to effect price administration.Firstly, to conduct price regulation on micro-economy, as a kind of ecnomic regulation, Government and enterprises' price behavior are its object and subject respectively. It is its foundation that externality, monopoly and unbalanced information of market activities deviate from Pareto-optimality. Price regulation is not the substitute to market and market mechanism but Government creates conditions whenever and wherever the effect of market mechanism hasn't been fully elaborated. It can be divided into direct regulation and indirect regulation and restricted directly the price behavior of monopoly enterprises which have the right of fixing price and create indirectly efficient environment for market price mechanism respectively. Secondly, to control price on macro-economy, i.e. to control General Price Level which is averaged from indexes of commodities and services. GPL should be maintained stable in economic performance since it is the basic premise of maintaining steady economic growth and furthermore, it means that national economy is stable and developed coordinately. If GPL is getting up, it will result in currency inflation and unfair allocation of social resources, meanwhile, it will twist supply-demand relations, distortion of price signal and failure of price mechanism as well as lower efficiency of social resource allocatioa On the contrary, if GPL is getting down, it will result in currency deflation and economic recession, since with the decline of price, it is inevitable that market is getting withered, less orders and high stock.. The profit of enterprises is declining and people are doubt to the prospect of economic development, therefore, price administration is regulation and control to GPL which is conducted by Government on macro-economy.This dissertation studies the issues that Government administrates price under socialism market economy in China and the author attempts to structure a basic frame that Government administrates market economy and price by means of systematic studies on price administration in China.The dissertation is consists of 6 chapters: Chapter 1. Evolution of price administration in China. Starting out from the history, the authorapproaches the evolving process of price administration in China and studies its policy targets and results in planning economy and illustrates the necessity and inevitability of price administration system reform practically and theoretically, meanwhile, the author studies stress transformation of price administration during pnce reform and market prices including that of factors of production and reveals the contribution of price reform and some problems which have emerged from the transforming of planning economy to market economy, and furthermore, makes out a general evaluation to the price reform in China.Chapter 2. Theoretical description and analysis of price administration in market economy. The author approaches market price and its operational law, price mechanism and price flaw, points out the necessity of pnce administration and what Government administrates price and how to administrate it, meanwhile, declares that price administration isn't to contain the fun...