Editing Price system (section)

{{short description|Economic system}}
{{Economic systems sidebar|coordination}}
In [[economics]], a '''price system''' is a system through which the [[Economic value|valuations]] of any forms of property (tangible or intangible) are determined. All societies use price systems in the allocation and exchange of resources as a consequence of [[scarcity]].<ref name=":0">{{cite encyclopedia | url = http://www.britannica.com/EBchecked/topic/475822/price-system | title = Price system | author = [[George J. Stigler]], [[William J. Baumol]] | encyclopedia = [[Encyclopædia Britannica]] | access-date =2 January 2018}}</ref> Even in a barter system with no money, price systems are still utilized in the determination of exchange ratios (relative valuations) between the properties being exchanged.

A price system may be either a [[regulated market|regulated price system]] (such as a [[Fixed price|fixed price system]]) where [[Administered price|prices are administered]] by an authority, or it may be a [[free price system]] (such as a [[market system]]) where prices are left to float "freely" as determined by supply and demand without the intervention of an authority. A mixed price system involves a combination of both regulated and free price systems.<ref name=":0" />