(2) Adjust the allocation of resources. The price level affects supply and demand, guides production and consumption, and thus regulates the rational allocation of resources.
(3) Adjust income. The price level determines the economic interests of producers and consumers and is a measure to adjust income distribution.
(4) It is a powerful tool for competition.
Price mechanism refers to the spontaneous process and form of price formation and the adjustment and influence of its changes on economic activities such as production, consumption, supply and demand, which is the main content of market mechanism in commodity economy. The price mechanism includes: the way of price formation; Factors affecting the formation of price and its restrictive effect on price; The adoption of price forms and the relationship between various price forms.
The emergence and change of price system, the relationship between price structure and commodity price difference; The price of various commodities and the change of the overall price level and its restrictive factors; The formulation, adjustment and management of market prices, and the relationship between economic means, legal means and administrative means in price management; The relationship between price and other economic levers and the regulation of social reproduction, and so on.
The price mechanism is divided into two aspects: price formation mechanism and price operation mechanism.
The focus of price formation mechanism is to explain the relationship between institutions, economic organizations, enterprises, residents and judicial institutions with direct pricing power, indirect pricing power or price intervention power in the formation of a certain type or a certain type of actual price. The price formation mechanism determines the law of price changes in real economic life and affects the scope and degree of actual price changes.
The operating mechanism of price is the form and condition for price to play its function in the process of movement and realization, and it is the internal connection between price and other economic levers or economic adjustment means in the process of actual change.
Application of price mechanism
As a mechanism, price regulates social and economic life, and its function is internal, so it is independent of people's subjective will. However, just as any economic mechanism can be recognized and consciously used by people, the price mechanism can also be used by people in the process of regulating social and economic life. In this way, the price mechanism has evolved into a price lever because of people's conscious use.
The application of price mechanism is what people usually call the application of price function. By changing the conditions of the price function, people can change the scope and degree of the price function and achieve the expected purpose. This is the application of the price function. The application of price function is very rich, including why to use it (the purpose of application), what to use (the content of application) and how to use it (the way and method of application).
1. The content of the price mechanism. In real economic life, the role of price mechanism will often be reversed under different conditions. Moreover, due to different conditions, its degree, form and effect will be different under different conditions. The application of price mechanism includes three aspects: first, price has various mechanisms or functions, and the application of price mechanism is to create conditions and play a better role on the basis of understanding and mastering the law of price movement.
Second, the price mechanism or function will have different functions or effects under different conditions, that is, sometimes it is positive, sometimes it is negative, and even harmful. The application of price mechanism is to seek advantages and avoid disadvantages, make full use of its positive role and avoid and overcome its negative role. Thirdly, from practice, according to different conditions, different users and different objects, we choose different ways to use the price function.
It can be seen that the application of price mechanism is essentially the application of price right in real life. Price power includes decision-making power, execution power, supervision power and regulation power. Because different social groups have different positions and interests in the national economy, the price right is in the hands of different social groups, and its application mode, content and effect will be different.
2. The subject of the price mechanism. Under the condition of commodity economy, the price decision-making system is generally divided into three levels: national decision-making, enterprise decision-making and individual decision-making, so the subject of price behavior, that is, the subject of price mechanism application, is also divided into three parts or levels: country, enterprise and individual.
Although these three price mechanisms have different positions and functions in social and economic life, they are consistent in following the basic law of commodity economy-the law of value, and the only difference lies in the purpose, mode, method, scope and function of application.
3. Ways and means to use the price mechanism. To sum up, the ways and methods of using price mechanism include the use of price form, the way of price formation, the determination and adjustment of price level, the choice of application method and so on. The ways and methods of using the price mechanism are different for different price users.
First of all, look at the country, which represents the interests of the whole people and directly produces and operates a few important commodities related to the national economy and people's livelihood, so it has direct ownership, control and price decision power over the produced and operated commodities. There are two ways to use the price mechanism: first, when the country appears as the representative of the interests of the whole people, it has three price rights: decision-making, supervision and regulation.
Its application method is to stipulate, guide and even force the price behavior of other price users by formulating price policies, guidelines and laws. In terms of implementation means, it is a combination of economic, administrative and legal means, but it is mainly economic means, mainly through financial, financial, credit, exchange rate and a large number of commodity processing means, which affects the effect and movement of adjusting the price level by using the price mechanism from a macro perspective. Second, when it appears as a commodity producer and operator, it directly sets the prices of the commodities it produces and operates.
Secondly, look at the enterprise. Enterprise is the cell of commodity economy, the direct producer and operator of commodities, and the main body of market exchange. Therefore, enterprise is the most important level in the application of price mechanism and the most basic and important subject of price behavior. Under the condition of commodity economy, enterprises, as independent commodity producers and operators, have independent economic interests, but they must act in accordance with the price behavior norms, principles and policies formulated by the state, so enterprises enjoy the right to make price decisions and execute them.
In the application of price mechanism, it is often twofold: on the one hand, from the interests of enterprises, the purpose of using price mechanism is to obtain the maximum profit and make itself in a favorable position in the competition, so it pays more attention to the application of price strategy. The ways and methods of using the price mechanism are different not only at the national level, but also among enterprises.
On the other hand, due to the contradiction between the interests of enterprises and the interests of the state and consumers, the price behavior of enterprises is bound to be bound by relevant guidelines, policies and regulations, so the use of price mechanism by enterprises cannot be arbitrary and must be inspected and supervised by the people.
Look at individual commodity producers and operators. This level, like enterprises, also has the decision-making power and execution power of prices, and the ways and methods of using prices are roughly the same as those of enterprises, and they also have duality.
Legal basis:
People's Republic of China (PRC) price method
Article 3 The state practices and gradually improves the mechanism that prices are mainly set by the market under macro-control. The pricing should conform to the law of value. Most goods and services are subject to market-regulated prices, and very few goods and services are subject to government-guided prices or government pricing.
Market-regulated price refers to the price set by operators independently and formed through market competition.
The term "business operators" as mentioned in this Law refers to legal persons, other organizations and individuals engaged in producing and dealing in commodities or providing paid services.
Government-guided price refers to the price set by the competent pricing department of the government or other relevant departments in accordance with the provisions of this law. The benchmark price and its floating range are set according to the pricing authority and scope to guide operators in setting prices.
Government pricing refers to the price set by the competent pricing department of the government or other relevant departments in accordance with the pricing authority and scope stipulated in this Law.