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This is type of government activity desirable. Administered pricing is an attempt to establish prices for an entire market. Such prices may be arranged through the cooperation of competitor; through national, state, or local government; or by international agreement. In general, the end goal of all administered pricing activities is to reduce the impact of price competition or eliminate it. The pervasiveness of price-fixing attempts in business is reflected by the diversity of the language of administered prices; pricing arrangements are known as agreements, arrangements, combines, conspiracies, cartels, communities of profit, profit pools, licensing, trade associations, price leadership, customary pricing, or informal interfirm agreements. The arrangements themselves vary from the completely informal, with no spoken or acknowledged agreement, to highly formalized and structured arrangements.

Government price administration is beneficial for most marketers. Companies doing business in foreign encounter a number of different types of government price setting. To control prices, government may establish margins, set price and floors or ceilings, restrict price changes, compete in the market, grant subsidies, and act as a purchasing monopsony or selling monopoly. The government may also influence prices by permitting or even encouraging, business to collude in setting manipulative prices. Government of producing and consuming countries seem to play an ever-increasing role in the establishment of international prices for certain basic commodities. There is, for example, an international coffee agreement, an international cocoa agreement, and an international sugar agreement. And the world price of wheat has long been at least partially determined by negotiations between national governments. Despite pressure of business, government, and international price agreements, most marketers still have wide latitude in their pricing decisions for most products and markets....