Price book

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Economics[edit]

In economics, a price book is a book in which the normal prices of an item are listed for all suppliers. This allows one to determine the lowest price possible.

If a group of suppliers adhere to a particular price book, in other words, they set the prices of the price book artificially higher than the market clearing price, then they are "fixing the price" of that item; this is illegal in most countries and is often found in oligopolies (industries with a few competitors (2-8), but not enough to make it a perfect market).

Construction industry[edit]

In construction a price book is used to estimate the cost of work. Historically the Carpenters' Company of the City and County of Philadelphia used their price book to control prices.[1]

References[edit]

  1. ^ Eggener, Keith. American architectural history: a contemporary reader. London: Routledge, 2004. 113. Print.