Price Control Mechanisms Research Articles

Unveiling the relation between household energy conservation and subjective well-being: Insights from structural equation modeling

Electricity is essential to Pakistan's economy and, it helps to improve the living standards of people. However, the state has long suffered from problems like imbalances in the supply of energy, excessive energy use, and frequent power outages. The present study focused on investigating the relationship between energy-saving behavior, consumption, and subjective well-being in households in urban areas of Punjab, Pakistan. Using Structural Equation Modeling (SEM), the research analyzed how different features of electricity use and energy-saving practices affect the quality of life for families in the region. According to research findings, a strong intention to save electricity is also linked to enhanced subjective well-being. When families have an intention toward conserving energy, they feel a more positive change in overall households' subjective well-being while electricity consumption which is measured in terms of electricity bills, negatively affects the household well-being. The current research concludes that some families can experience a financial benefit from lower energy bills, and others would need assistance switching to more environment-friendly energy habits. Governments must adopt price-control mechanisms and electricity subsidies for low-income groups to encourage ethical energy usage and well-being, while also undertaking awareness programs aimed at a varied audience.

Economic Survey of Household Expenditure Pattern during COVID-19 Pandemic in Ogun State, Nigeria

The research investigated the expenditure patterns of rural households in the Nigerian state of Ogun. The precise aims of this study are to ascertain the determinants that influence the weekly expenditure on food within the household and to estimate the total amount spent on food. A simple random sampling method was employed to ascertain the 480 rural households that comprised the study area. The interview schedule was employed to obtain essential data from the participants in the study area, including age, marital status, and food expenditure. The descriptive statistics and Ordinary Least Square (OLS) regression were used to determine the determinant of the quantity spent on food in the households of respondents in the study area. Descriptive statistics indicate that 55.0% of the respondents are married, 75.0% have completed formal education, and the mean age, household size, and monthly income are estimated to be 45 years, 6 individuals, and ₦49,500.50, respectively. The majority of participants (66.67%) reported spending less than ₦20,000.00 on food. The estimated mean expenditures for food consumed at home and while away from home were ₦17,544.60 and ₦16,700.55, respectively. Household food expenditure is significantly and positively influenced by household income (p0.01), the age of the household head (p0.1), household size (p0.01), and occupation (p0.05), according to ordinary least squares regression. Food expenditure was significantly influenced by household income, household size, and the age of the household chief, according to the findings of this study. Policy consideration should be given to the price control mechanism for food so that it is more affordable for rural residents, according to the study.

Government Intervention: Price Control Mechanism on the Rice Industry in the Philippines

Government Intervention: Price Control Mechanism on the Rice Industry in the Philippines

Exploring the Evolution of Statin Pricing in Australia: Observations of Price Disclosure Effects on Pharmaceutical Benefits Scheme Expenditure

ObjectivesThe high cardiovascular disease burden globally and in Australia necessitates attention on statin expenditure, the primary pharmacological intervention for cardiovascular disease risk factors. The Pharmaceutical Benefits Scheme (PBS) subsidies approved statins for Australians. Managing PBS government expenditure occurs through price control strategies of statutory price decreases upon first generic entry and price disclosure. This study investigates the impact price control measures had on statin price evolution and government expenditure between 2010 and 2022. MethodsPrescription and pricing data were obtained from Services Australia Medicare Statistics, and price reduction strategies from the PBS. Summary statistics compared and described statin price, prescription, number of brands, market share, and government expenditure to atorvastatin, fluvastatin, pravastatin, rosuvastatin, and simvastatin price control timelines. ResultsStatin prices exposed to price control measures decreased irrespective of dosage and correlated with reductions in government expenditure, with a comparison of 2010 and 2022 showing annual statin expenditure declined by AU$833.5 million (83.25%) whereas prescriptions reduced by 3.0 million (15.7%). Effects of price disclosure on atorvastatin and rosuvastatin market share suggest industry-prompted price reductions may arise from market share loss, whereas reasons external to pricing prompted rosuvastatin to gain market share. ConclusionsLimited publications on contemporary effects of statin price control measures exist. This investigation found these measures reduced government expenditure for statins by AU$949.1 million, with the price reduction correlating with price control measures. In addition to affirming price control mechanisms remain effective in contemporary times, this investigation provides data for key insights into the Australian statin industry.

Examining how unemployment, inflation and their related aspects affected economic growth in Palestine: The period from 1991 to 2020

This study aims to focus on identifying how unemployment and inflation and their related aspects affect Palestinian economic growth. The study employed the Autoregressive Distributed Lag (ARDL) model employing annual time series data for estimate and result analysis. The ARDL model was estimated in both long and short run as follows; on one hand, the results showed that there is a potential negative impact of aspects-related unemployment on economic growth in Palestine over the long-term. On the other hand, over the long term also, it can be noticed that there is a positive impact of aspects-related inflation on economic growth in the state of Palestine. In the short term, a significant negative effect of unemployment (UN) was discovered on economic growth, while there was no effect of inflation (INF), despite being positive. The error-correction model (ECM) has been adopted in this model, and the results revealed that the ECM co-efficient [ECM (−1)] was positive and equaled to (0.0183) and therefore was not significant. Based on the results obtained, the study recommended that there a need to stabilize inflation through effective price control mechanisms that can enhance macroeconomic conditions, increase investor confidence, stimulate economic growth, and work to create opportunities for the full use of human resources by stimulating self-employment to engage in entrepreneurial activities according to the qualifications of graduates. Finally, it equips population, especially youth, with relevant skills to increase productivity and reduce unemployment.

Can U.S. strategic petroleum reserves calm a tight market exacerbated by the Russia–Ukraine conflict?

Recent changes in global petroleum markets have driven the debate regarding the use of strategic petroleum reserves (SPRs) as a price management tool during periods marked by extreme price volatility. We examine the price management role of the U.S. SPR under typical market conditions and in extreme emergencies. Furthermore, we discuss the White House's hypotheses that (a) boosted Organization of the Petroleum Exporting Countries' (OPEC) production and releases from the U.S. SPR result in a negative pressure on U.S. gasoline inflation, and (b) crude oil releases from the U.S. SPR helps balance the global oil market. The threshold cointegration results indicate that U.S. SPR releases impact neither OPEC production nor imported input prices. We apply a hybrid open-economy Phillips curve to model gasoline inflation, accounting for backward- and forward-looking price settings, domestic and global slackness, and energy security. We distinguish between normal-, super-, and hyper-backwardation and -contango oil markets using threshold cointegration and regression techniques. Our results demonstrate that SPR releases and OPEC output increases generally decrease inflation, with a crucial exception being the hyper-backwardation market, as seen in 2021–2022. This period was characterized by severely constrained global supply buffers, including OPEC's spare capacity, exacerbated by the Russia–Ukraine conflict. For this period, we conclude that (1) the impact of OPEC production changes on gasoline inflation would be negligible, (2) excess domestic demand relative to domestic supply raises concerns about domestic energy security, and (3) the unprecedentedly large SPR drawdowns are likely to have caused the market to panic and contributed to gasoline price increases, contrary to arguments suggesting that the 2022 releases eased domestic gasoline prices. We conclude that the SPR is an ineffective price control mechanism during crises and may not have the strategic value previously thought in an extremely tight oil market.

Large scale low‐cost green hydrogen production using thermal energy storage and polymer electrolyte membrane electrolysis systems

With increased dominance of renewable energy in developed countries, there is increased frequency of excess electricity and grid inflexibility. Without sufficient energy storage, renewable assets become stranded. With aims for net-zero carbon emissions, countries are looking to green hydrogen to replace fossil fuels. A combined system of affordable large scale energy storage and electrolysis is proposed to address these issues. An original approach, using low-cost wholesale grid electricity and thermal energy storage for proton exchange membrane electrolysis, has been modelled. An electricity price control mechanism is used for the operation of an electric thermal energy storage system. A 1600 MW grid connection provides power for resistance heating to charge 45 GWh capacity thermal energy storage, which powers a 20 MW rated steam turbine. This then powers a 17.5 MW electrolyser, and compression system during high-cost electricity periods. Grid power charges the storage and powers electrolysis during low-cost periods. Model simulation data allows the calculation of combined system lifecycle costs and levelized cost of hydrogen, which lead to profitability analyses. Results of system simulations give hydrogen costs lower than those of current and projected green hydrogen production methods. Simulation provides evidence that an initial investment of 64.4 million US dollars, could yield 1.14$/kg of hydrogen, 5.2 tonnes/day of hydrogen, and a 230% return on investment capital, through use of excess renewable energy.

Determinants of Maize Yields among Small-Scale Farmers in Mbinga District, Tanzania

Maize plays a significant role in food security strategies in the world. It is the world’s most important food crop to majority of communities since it provides cheap source of essential calories as compared to other sources of protein foods. It has the potential of being grown in a variety of agro-ecological zones with varied yields per hectare. The main purpose of this study was to analyse the determinants of maize yields among small-scale farmers in Mbinga district, Ruvuma region, Tanzania. This cross-sectional study employed a multistage sampling method to select 120 farmers in the study area. Semi-structured questionnaires and key informant interviews were used for data collection. The data was analysed by descriptive statistics and multiple regression analysis (double-log model). The results indicate that farm size, amount of seed, fertilizer and labour were the significant determinants of maize yields among small-scale farmers in the district. The study recommends that; the government should ensure access to quality and affordable inputs to farmers by employing effective price control mechanisms on fertilisers and improved seeds which are imperative in improving the yields. Farmers should be capacitated on accessing affordable loans through financial inclusion programs and expand market access that can be reliable through the formation of farmers’ associations. Farmers should be exposed to better farming techniques such as the rational application of inputs through effective provision extension services.

Analyzing the Factors Affecting the Price of Broiler Chicken in Turkey Using the Boosting Regression Method

Investigating the factors that affect broiler chicken prices in Turkey is vital for understanding market formation. The parameters and factors likely to influence the price of broiler chicken were analyzed for the period between 2010-2020 in Turkey. The study adopted the boosting regression model to predict the correlation between broiler chicken consumer price and variable factors like broiler feed, corn, soybean meal, wheat prices, the dollar exchange rate, producer price index (PPI), and agricultural PPI. The accuracy of the estimation of the regression model created according to the results of the analysis was calculated as 86%. The producer price index variable caused the highest relative impact (25.63%) on broiler chicken meat prices. The highest positive correlation was obtained between the producer price index and the agricultural PPI (r = 0.984). Thus, it was determined that chicken prices were affected by feed raw material prices and the general economic conditions in Turkey. In addition to improving the prevailing economic conditions, an effective price control mechanism is required to prevent excessive price fluctuations in the sector. Simultaneously, it is essential to create policies to reduce input costs.

The Effects of Tunnel Technology on Crop Productivity and Livelihood of Smallholder Farmers in Nepal

Technologies-based production practices are critical for agricultural growth and sustainable development in low-income countries like Nepal. In the last few years, tunnel house has been increasingly promoted as tools to enhance smallholder farmers’ livelihood and tackle climate adversaries. However, little is known about what factor determines its adoption and whether it helps smallholders adapt to climate change and experience better livelihood. We address these gaps using the cross-sectional survey data collected from 62 adopters and 92 non-adopters in three municipalities of Bagmati Province. We employed descriptive analysis and probit model and found out that age, farm size, and ethnicity strongly influence the technology adoption amongst smallholder farmers. Additionally, treatment model and ordinary least square (OLS) regression were utilized to examine tunnel technology’s effect. Our study shows that tunnel significantly increases production by 32 tons/year/hectare and protects crops from climate change effects such as heavy rainfall and temperature change. Likewise, tunnel technology increases the net crop income by $1700/year/hectare. However, the economic benefit is not substantial compared to technology’s adoption cost as adopters incur enormous costs of $12,000/year/hectare on equipment, labor and resources. These results suggest policymakers should concentrate on reducing the technology’s cost, which could be achieved through subsidies, financial support, or price control mechanisms. Ensuring technology’s affordability can contribute to smallholder farmers’ sustainable livelihood in Nepal and countries with similar contexts.

A network group booking model for airline revenue management

PurposeAirlines use various analytical techniques to optimally control seats in its various fare classes. Most literature on inventory control does not discuss policies for group arrivals. This study aims to address the literature gap in determining an optimal booking policy which considers the dynamics of group behaviour with respect to cancellations and refunds.Design/methodology/approachAn analytical model by which bid price control mechanism can be applied to group bookings is developed through this study.FindingsNumerical experiments are performed to demonstrate the analytical model under various scenarios. A comparison of the model with the traditional model indicates an increase in the total revenue generated.Originality/valueThe novelty of this work is in modelling the dynamics of group behaviour in a network of flights, and it contributes to the literature on revenue management.

Drug Utilization and Drug Pricing in the Private Primary Healthcare System in Malaysia: An Employer Price Control Mechanism.

Uncontrolled drug pricing in the private healthcare system in Malaysia leads to high drug prices; however, its impact on employee drug utilization and employer reimbursement coverage is unclear. This study examined patterns of drug pricing and drug utilization among employees covered by employer medical insurance. A drug price control mechanism was also devised for the employer to ensure fair benefits to all parties without compromising the quality of patient care. This retrospective study was conducted among International Islamic University Malaysia (IIUM) community members who sought outpatient treatment at the IIUM panel of health clinics serviced by general practitioners from January 2016 to September 2019. Prescription data (drug type, dose, quantity, duration, price, and manufacturer), patient characteristics (age, sex, and diagnosis) and total charges were extracted from the claims database of PMCare, the insurance company managing IIUM medical claims. Patterns of commonly prescribed drugs, drug pricing, profit margins, and total charges per clinic visit were evaluated. Descriptive statistics were used, and all analyses were performed using Stata v15.1. There were a total of 161,146 prescriptions for 10,150 patients in the IIUM community during the study period (48.85% women, mean ± standard deviation; age: 26.33 ± 17.63 years). The most commonly prescribed drug was paracetamol (25.3%), followed by chlorpheniramine (9.46%), cetirizine (7.3%), diphenhydramine (6.13%), loratadine (4.57%), and diclofenac (4.36%). Generic paracetamol (500 mg), which serves as a prime example for details on drug pricing, is commonly charged between Ringgit Malaysia (RM) 5 and 10 for 10 tablets with a profit between 2,400 and 4,900% according to the average cost price of RM 0.20 per 10 tablets. Most patients were charged within the approved coverage limit of RM 45 per clinic visit, with only 2.41% of patients being charged with costs that exceeded this limit. Uncontrolled drug pricing in the private healthcare system in Malaysia indicates that drug prices differ greatly across private healthcare providers most of the prices were charged with high profit margins. Employers may consider a multilayer capping system to prevent inappropriate drug pricing, which will inevitably benefit patients clinically and economically and provide greater patient access to better drug treatment.

COVID-19 Pandemic Cases and Deaths in Selected Regions: The Need for Policy Recommendations

Despite the indescribable adversity of COVID-19, which raised deaths in most regions, the pandemic came with a number of good lessons that affect certain value metrics (healthcare, education, productive capacity, and price control mechanisms). In this study, we examined the role played by COVID-19 pandemic cases and deaths in selected regions and the need for policy recommendations. Using a mixed research approach, reported laboratory-confirmed COVID-19 cases and deaths between 12 and 17 March 2020 were obtained across six regions – Western Pacific, Europe, South East Asia, Eastern Mediterranean, America and Africa. Qualitative results showed that the COVID-19 pandemic predominantly affected Western Pacific and European regions. Besides, an analysis of variance revealed an insignificant difference in reported laboratory-confirmed cases and deaths of COVID-19 across the regions during the studied period. These results are, in part, attributable to the homogeneity in the strategies adopted to tackle the COVID-19 pandemic in these regions. Thus, there is a need to strengthen certain valuable metrics, particularly in the healthcare sector by means of upgrading medical equipment (for nations in lack) and recruiting more qualified healthcare workers in view of future events of any pandemic.

Causality Analysis of the Factors Affecting the Consumer Price of Veal: The Case of Turkey

It is interesting to identify the reasons and the direction of the correlation between the input/output prices and the macro/micro parameters in animal production processes. In the present study, the time series of the monthly data between the years 2014 and 2019 were analyzed to examine the factors that affected the consumer price of carcass meat in Turkey. An attempt was made to identify the relationship between the consumer price of carcass meat and the prices of cattle fattening feed, the exchange rate of the dollar, producer price index (PPI), and the agricultural PPI, which were anticipated to affect the consumer price of carcass meat as determined by the Granger causality analysis. According to econometric analysis results, when there is a change in carcass producer price, cattle fattening feed and PPI in the short term, the consumer price of carcass meat is affected by this. The producer price of carcass and PPI variables are determined to be the cause of each other’s Granger. At the same time, the PPI variable and the consumer price of carcass meat and dollar rate variables were found to be the cause of each other’s Granger. If Turkey is to prevent the excessive fluctuations in the consumer- and producer-prices of carcass meat caused by macro variables, an effective price control mechanism should be put into practice. It seems that this change would be possible only by developing and implementing policies to lower the input prices and production costs.

Transport policy, rail freight sector and market structure: The economic effects in Brazil

Abstract After fifteen years of railway concessions in Brazil, the rail freight sector became responsible for over 26% of the total transported volume in the country, an increase of 20% during this period. This Brazilian experience led a recovery in productivity and investment levels, with an improvement in service quality and modernization of the sector. Nevertheless, the rail price control mechanisms were almost unrestricted, allowing the concessionaires keep prices at very high levels. Just in 2012, it was held the first revision of price cap regulation of the sector. In this paper, we analyze the long-turn economic impacts of the rail freight sector tariff review policy in Brazil through the use of a dynamic general equilibrium model. The model incorporates some forms of market imperfections within its theoretical structure. Regardless the assumptions attributed to productive system, the main findings suggest that tariff policies promote positive effects on GDP growth, exports, and investments, as well as on other sectors, such as those most intensive in freight railways. However, the projections seem to confirm an onus on rail freight sector, with fall on its supply, return rate and private investment.

The Determinants of the Expansion of the Exchange Rate on The Black Market in The Maghreb

The shadow economy has recently grown significantly in the overall national economy. In the Maghreb countries (Morocco, Algeria, Tunisia, Libya, Mauritania), the informal economy is the result of the introduction of a managed economy, which gradually forms the prerequisites for the emergence of a monetary deficit in these countries. Since the early 1990s, after the institutional changes in the market economy, a black currency exchange has taken a significant turn, which was accompanied by a large gap between the black market and official currency exchange. The relevance of this study is to determine the leverage of the exchange rate on the black market, which will determine the causes and factors of the expansion of this market. The purpose of the paper is to analyze the key determinants of determining the nature and dynamics of the black market exchange rate, as exemplified by the Maghreb countries in the context of long-term relations. The methodological support of the study includes the grouped mean group method and the Granger causality test. The author substantiates the following determinants of the shadow market exchange rate: the official exchange rate, the official real exchange rate, the differential expected rate of return, money supply, the level of reserves and prices. The study empirically confirms that the official exchange rate is the most significant variable that most influences the exchange rate in the shadow market, the official real exchange rate plays a secondary role in determining the black market exchange rate. These results are confirmed in the Granger causality test, which revealed the existence of unidirectional causality between the dependent black market exchange rate and the independent variables – the official rate, the official real currency rate, and the differential expected rate of return. Based on the conducted research, the author has identified the following recommendations for public authorities: 1) managing the shadow currency exchange market is possible in the context of adopting a complex of measures to diversify the sources of currency and implementing a monetary policy on the interest rate based on external rates; 2) the formation of a price control mechanism that will help reduce dependence on the international market. The paper focuses on the further use of the currency hedging instrument in the financial practice of the Maghreb banking system. The author emphasizes the need for the Central Bank to establish appropriate instructions for commercial banks on the organization and functioning of the interbank foreign exchange market in foreign trade operations. Keywords: currency exchange; the black market; Granger causality; heterogeneity; money supply; official course.

Association between medicine Price declaration by pharmaceutical industries and retail prices in Malaysia\u2019s private healthcare sector

BackgroundAs part of the initiatives to increase price transparency for consumers, pharmaceutical industry in Malaysia have been encouraged to declare the wholesale and recommended retail prices (RRP) of medicines to the Pharmaceutical Service Department (PSD) yearly. However, the relationship between the voluntary price reporting practices and consumers’ retail medicine price is unknown. Therefore, this study aims to evaluate the effect of the voluntary price reporting practice of pharmaceutical industry on retail medicine prices, factors that may affect consumer medicine prices in Malaysia’s private healthcare sector, and the retail medicine pricing trend over 2011–2015.MethodsA yearly correlation test for a 5-year period was performed to investigate the association between the wholesale and RRP medicine prices declared by the pharmaceutical industry from 2011 to 2015 on the one hand and the consumer wholesale and retail medicine price database on the other hand. The median price ratio (MPR) was calculated by comparing the consumer retail medicine price to its international reference price. The Krukal Wallis test was used to analyse the pricing trend throughout the 5-year period, and factors that might elevate the MPR above 2.5 were modelled using binary logistic regression.ResultsA total of 2527 medicine price data were analysed. There was a strong significant association between medicine prices declared to the PSD and the retail medicine prices in every year of the 5-year period. Moreover, there was no significant increase in retail medicine prices throughout the 5-year period. The medicine types, retail location, type of manufacturer, medicinal indications, declared wholesale and RRPs significantly influenced the consumer MPRs that where > 2.5.ConclusionThe declared medicine price was found to have a significant association with the consumer retail medicine price. Thus, it may be a useful reference for consumers purchasing medicines in private healthcare settings. However, the government of Malaysia must develop strategies to increase medicine price transparency for price-control mechanisms in the private healthcare sector.

Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms

In an attempt to alleviate water scarcity, the government of China has introduced a water plan for the year 2030. Based on a dynamic computable general equilibrium model, this paper investigates how conservation of irrigation water, grain production, and the welfare of rural households will be affected by planned reductions to the irrigation water subsidy between 2018 and 2030. Four policy instruments, namely quantitative control (QC), quantitative control with a subsidy reduction (QC-SR), price control (PC), and price control with a subsidy reduction (PC-SR) are employed in the model. Most existing research has found that reducing the irrigation subsidy will lead to significant negative impacts to the agricultural economy, and especially to rural households. These predicted negative impacts are a barrier to agricultural water policy pricing reform. However, the results of this research show that a provincial subsidy reduction to 1% between 2018 and 2030 will have an insignificant impact on agricultural production as well as rural household incomes and welfare, despite the subsidy rate currently accounting for more than 90% of the total irrigation value at the macro level in most provinces. Furthermore, PC will create a demand for irrigation water, which is predicted to rise to more than five times the agricultural water planning level currently set for 2030, and PC-SR will not achieve the agricultural water planning goal.

PHP41 - IMPACT OF PRICE REGULATION ORDINANCE ON TOP 20 PRESCRIBED MEDICINES PRICES IN BOSNIA AND HERZEGOVINA

Ordinance on maximal wholesaler price in Bosnia and Herzegovina (B&H) became effective since 2017. It is referral pricing approach where average price from Croatia, Serbia and Slovenia multiplied by factor of 0.90 for generic, 0.95 for originator and 1.0 for medicines under patent protection. Each year Agency for medicines and medical devices of B&H revise and announces prices. The aim of this study is to evaluate impact of application of the Ordinance on top 20 reimbursed medicines prescribed at primary care level in last two revisions. Top 20 prescribed medicines (value share) and reimbursed have been selected. We have calculated impact of price control ordinance on selected medicines comparing announced prices in 2018 and 2017. We have considered only dosage forms that are reimbursed and are sufficient to cover monthly therapy needs like biggest available pack on the market. Top 20 INNs reimbursed and mostly prescribed represents 19% (317,5k€) of total market. 47% are cardiovascular medicines, 33% antidiabetics (insulin and metformin) and rest are medicines from respiratory, antibiotic and NSAID group. Of these 20, 48 different dosage forms are reimbursed. Average unit price per pack in 2017 was 17,12€ while in 2018 it was 16,89€. Majority of drugs was affected by price decrease in 2018 versus 2017 (44%), 38% kept the previously established price while for 19% price increase was allowed. Price of carvedilol was increased for 36% (from 6,06€ to 8,30€ on average) and highest price decrease is noticed for enalapril and salmeterol/fluticasone counting -27% and -21% respectively. Price control mechanism introduced in Bosnia and Herzegovina has the primary goal to control and decrease prices of prescribed medicines. Overall, average price for to 20 prescribed and reimbursed medicines was decreased, but also it can be noted that prices for some medicines can be increased as well.

One‐on‐one contract game–based dynamic virtual machine migration scheme for Mobile Edge Computing

AbstractIn the evolution toward fifth‐generation networks, Mobile Edge Computing (MEC) is an emerging paradigm, conceived to meet the ever‐increasing computational demands of mobile applications. Within the access range of mobile devices, the MEC technique promises the enablement of efficient Mobile Cloud Computing services. In an MEC system, virtual machine (VM) migration is a key issue; VM migration is the process of moving a VM from an edge node to another edge node. To improve service quality and system performance, the VM migration method has a dual focus on the MEC system's computation and communication resources. In this study, we formulate the VM migration problem as a one‐on‐one contract game model and develop a learning‐based price control mechanism to effectively handle the MEC's resource. By using the game methodology and learning process, our approach is able to capture the dynamics of MEC systems, and it interacts continually with an unknown system environment. Finally, extensive simulation results are provided to demonstrate the capability of the proposed approach in achieving, with respect to existing MEC schemes, both higher resource utilization and system throughput, as well as reduced service drop ratio and reduced service delay.