Price
Price is a synontic coordination variable that encodes, in scalar form, the locally valid exchange ratio between heterogeneous goods, services, or claims, arising from structured interaction among agents within an institutionalized exchange regime.
Type
Which are the type of prices?
| Type of Price | Definition / Description | Nots |
|---|---|---|
| Relative Prices | Prices expressed in terms of other goods; reflect opportunity cost | 1 chicken = 3 eggs |
| Nominal Prices | Prices expressed in monetary units | Bread = 100 pesos |
| Real Prices | Nominal prices adjusted for purchasing power | Bread relative to consumption basket |
| Market Prices | Prices formed through supply–demand interaction in a market | Stock market prices, commodity prices |
| Shadow Prices | Implicit prices representing true marginal opportunity cost | Cost of carbon in emissions trading |
| Administered Prices | Prices set by authority, not by market forces | Regulated electricity tariffs |
| Contract Prices | Prices fixed by intertemporal agreement | Long-term supply contracts, wages |
| Expected Prices | Prices anticipated by agents, guiding planning and production | Forecasted oil prices for investment decisions |
| Transfer Prices | Internal prices used within organizations | Division-to-division pricing in a firm |
| Distorted Prices | Prices diverging from opportunity cost due to taxes, subsidies, monopolies, etc. | Subsidized fuel below production cost |
Ontic Substrate
- Goods, labor, capital, time, energy
- Physical and technological constraints
- Production functions and resource limits
Synontic Structure
- Exchange rules
- Property and claim recognition
- Settlement and enforcement mechanisms
- Market-clearing or administered procedures
Dynamics
Which aret he dyhamics eleements of a rpice (phemnomea, chage, ...)?
- Price Formation
- Price Adjustment
- Price Transmission
- Price Inertia
- Price Volatility
- Price Anchoring
- Price Rigidity Breakdown
- Price Distortion Accumulation
- Price Collapse / Explosion
- ...