The function and role of prices are concepts which differ among themselves, although the terminology to be identical. Functions related to prednaznachenietto price and its role in the importance of price. In literature there ikononomicheskata discussions on the functions of tsanata. A group of economists believes that it performs a communicative, motivating and coordinating functions (Prof. Elena Miteva). Other economists consider cost as a criterion for business guide to action and means of economic impact. The main part of economists believe that price performs four functions:
Measurement;
Stimulating, respectively. restrictive;
Balancing (coordinated) - regulation;
Distribution, respectively. redistribution.
Differences between authors were separated by mixing concepts and the role and functions of giving different names for the same function of price.
Measuring function - its impact is determined by the nature of price and its ability to measure and expressed in money value of the goods whether it is seen from the perspective of the manufacturer or user. Predetermined and the ability to provide price equivalence in the exchange, its ability to measure and covers the cost of production and marketing as well as participation in the measurement of key economic parameters of the national and company level. At the national level through the prices are set and measured GDP, real income, brutoravnishteto and firm-level revenues, expenses, profit.
In a market economy, producers of commodities are forced to comply with the price level of its competitors, and within them reflect its costs and its output desired profits, and this means that by measuring its cost function not only help to measure economic results, but also forces manufacturers to fit into the recognized criteria of market returns and costs.
Balancing / regulating function - it relates to the ability of the price in a market economy to provide links between balance supply and demand of goods and services. Is manifested most strongly in terms of freely negotiated price. It is transmitted through market price important signals to producers and encourage practical solutions that lead to balance supply and demand. Regulatory function of price is essential and it is incorporated and other functions. In expanded form it is considered by some authors such as alignment, signaling function for surplus or deficit on the market, guiding the reallocation of investments to those that are effective.
Stimulating, respectively. restrictive - it is also embedded in the economic substance of the price, because through it restrict or encourage certain economic processes and phenomena. Occurs mainly through its influence on the process of exchange in the production and consumption. In the course of its exchange participants aim to achieve optimal results for yourself. For example, a seller can get maximum profit or maximum prodazhdbi provide for the buyer to minimize the amount of economic sacrifice, respectively, the acquisition of a product at the quality. Prices and motivating influence on production and on consumption. Impact on production resulting from participation in the profit structure of the price. Increase or decrease it, arising from the dynamics of price leads to promotion or restriction of production and supply of a product. Stimulating function of the price makes it one of the main elements of the marketing mix, which achieves marketing objectives to increase sales of market share. This stimulating effect is manifested particularly by implementing the system of discounts, price accents used selectively by large retail chains.
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Spreading function - it is the ability of prices to allocate and redistribute income between producers (by considering the prices of competitors), between producers and merchants (through the information contained in commercial price spread) between users and the state (through indirect taxes as part of the price ). A striking example of the redistributive function of the price is so. Differential pricing (based on different grounds).