1990Problems in EconomicsRequires access

Reform of Retail Prices, the Mechanism of Compensation, and Development of the Consumer Goods Market

V. M. Rutgaize, Alexander Shmarov, N. V. Klrichenko

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Abstract

We must address two interconnected but separate problems: to prepare and implement a reform of the existing scale, correlations, and structure of retail prices with due regard to all socioeconomic consequences; and to modify the existing price formation mechanism. Both problems are the subject of active discussion. The dominant opinion on the second problem is that an effective anticost price formation mechanism that would overcome the "creeping" growth of prices must be developed.

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We must address two interconnected but separate problems: to prepare and implement a reform of the existing scale, correlations, and structure of retail prices with due regard to all socioeconomic consequences; and to modify the existing price formation mechanism. Both problems are the subject of active discussion. The dominant opinion on the second problem is that an effective anticost price formation mechanism that would overcome the "creeping" growth of prices must be developed.

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Available abstract

We must address two interconnected but separate problems: to prepare and implement a reform of the existing scale, correlations, and structure of retail prices with due regard to all socioeconomic consequences; and to modify the existing price formation mechanism. Both problems are the subject of active discussion. The dominant opinion on the second problem is that an effective anticost price formation mechanism that would overcome the "creeping" growth of prices must be developed.

Key concepts: Compensation (psychology), Mechanism (biology), Price formation, Price mechanism, Consumer demand, Market mechanism, Economics, Microeconomics

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