Problems Of Price Formation Research Articles

Common risk factors in the returns on digital assets: evidence from cryptocurrency market

Introduction. Digital financial assets are a relatively new phenomenon. More and more, they include virtual currencies, and in particular cryptocurrencies. Both regulators and financial market players are becoming increasingly interested in such assets. Cryptocurrencies have no intrinsic value, and this encourages scientific studies on the problem of price formation and risk management associated with cryptocurrency operations. Most papers on the problem lack a systematic ap-proach and do not provide solutions to a large number of fundamental issues.
 Purpose. The purpose of our study was to develop a method for the risk analysis of operations with digital financial assets, namely cryptocurrencies.
 Methodology. In our study, we used parametric methods of data analysis and ma-chine learning methods, description, analysis, synthesis, induction, deduction, comparison, and grouping method. The sample was accumulated between April 2013 and April 2021 and included cryptocurrencies with the market capitalization of over 1 million USD.
 Results. The study determined the common risk factors for the cryptocurrency market. The risk factors are presented as linear combinations of returns of subsets of cryptocurrencies with dynamically changing weight coefficients. The risk factors were formed based on the market information, which included the price of the cryptocurrency, the trading volume, and its market capitalization.
 Conclusions. The study demonstrated that the cryptocurrency market is suscepti-ble to market anomalies common to traditional financial asset markets. In addition to the risk factors based on the market capitalization of cryptocurrencies (the size) and their aggregate profitability (the momentum), the article presents statistically relevant risk factors which reflect the growth rate of the market capitalization and the level of illiquidity of cryptocurrencies. In order to explain the market anomalies and the arbitrary strategies based on them, the article presents several factor models of cryptocurrency price formation. These models can be used to develop an in-tegrated approach to the risks associated with operations with digital financial assets.

Actual problems of price formation for agricultural products

The problems of prices formation for agricultural products are analyzed. In Ukraine, prices have been liberalized without market environment, unlike economically developed countries, where the market environment has evolved over a long period of time. This has led to high price volatility, which is very difficult for manufacturers to adapt. They cannot develop business plans and marketing programs. Due to high risk, bank loans cannot be attracted. The effectiveness of direct financial support programs is decreasing. They did not ensure the overcoming of monopoly tendencies in the field of product purchases and stabilization of the prices of efforts of state agricultural management and public organizations aimed at establishing marketing cooperatives. The cooperative products are sold to the processing plants at the same prices at which they would be harvested and sold without setting up a cooperative. Such cooperatives only simplify the activities of processing enterprises for the procurement of raw materials. Cooperatives, which carry out the processing of products, are viable ones that influence the level of prices and stabilize them. This forms a self-regulatory vertical marketing system of the cooperative type. Without government intervention, prices are acceptable that are acceptable both, for the production and promotion and sale of products to the end consumer. Prices are promptly revised in the light of market conditions and problems that arise at individual levels of the supply chain. Auction results have a significant impact on the overall level and dynamic price changes. The information on the results of the bidding affects the price level, which is formed by all other alternative sales channels. Monopolistic tendencies by individual market participants in the field of agricultural purchases are often only possible due to the lack of information on market conditions from individual producers and possible price in alternative distribution channels. All wholesale agricultural markets established in Ukraine are of a supply nature. They operate in large cities and create the conditions for manufacturers to produce manufactured products, but require trading operations throughout the day. Such markets are more appropriate for intermediary structures that operate on a permanent basis. For the manufacturers of products, wholesale wholesale markets that are created in the areas of production of raw materials are more acceptable. The founders of such markets are usually sales cooperatives. Large cooperative lots of homogeneous products can be offered in such markets by cooperatives in such markets. Auctions may be organized and conducted for such products.

Формирование теории цены

Автор проводит обзор формирования теории цены. Исследован вклад в развитие теории цены представителей затратного направления и представителей маржинального направления. По итогам исследования составлена картина генезиса теории цены, позволяющая спрогнозировать вероятное направление дальнейшего развития теории цены.

Asymmetric information and imperfect competition in a continuous time multivariate security model

This paper deals with the problem of price formation in a market with asymmetric information and several risky assets. We then extend the multivariate security model of Caballe and Krishnan (1994) to a continuous time framework, and general utility function. Our model enables us to observe some results which are specific to multi security markets such as Giffen effect. An application of the main result will be the non trivial generalizations of the models of Back (1992) and Cho (1997).

Two Points of View on the Problems of Price Formation

Two Points of View on the Problems of Price Formation

Prospects for Change in the Systems of Price Formation, Finance and Credit in the USSR

The Chairman of the Interdepartmental Council on Problems of Price Formation of the Academy of Sciences of the USSR and Goskomtsen discusses prospects for change in the pricing and credit policies of the USSR. Distortions in current price levels, the need and objectives for the restructuring of the system and links between the price and financial reforms are explained. Strategies for change are to include price formation from marginal prices and modification of wholesale prices to encourage high technology. Specific proposals are advanced, in particular those pertaining to stabilization of prices, circulation of money and reorganization of the bank credit system. Journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.

Problems Regarding the Formation of Socialist Planned Price

At present, following the agenda for the reform of the system of economic management, the problems of price formation in socialist planning have attracted the wide attention of economists and economic theorists, and they have led to exuberant discussions. Here, we join the discussion and present some of our preliminary views on the issue of price formation in economic planning.

The Scientific Research Institute on Prices in 1974 and 1975

The Scientific Research Institute of Price Formation of the State Committee on Prices of the USSR Council of Ministers (SRI on Prices) is the leading institution for the elaboration of problems pertaining to planned price formation. It also coordinates research in this area. Last year the institute completed a number of projects on major problems in the theory and methods of planned price formation, on the future improvement of the price system, on the creation of an automatic system for processing price data (ASPPD), and on foreign economic problems of price formation.

Some Problems of Price Formation under the New System of Management of the National Economy

Some Problems of Price Formation under the New System of Management of the National Economy

The Theory of Price Formation in Communist China

The theory of price formation has been vigorously discussed in Communist China since 1953, but the main themes of the discussion have varied. Generally speaking, the discussion may be conveniently divided into two periods. The first period covers the years prior to 1960, during which there were a large number of articles dealing with the role of the “law of value” in socialist planning and the problem of price formation for producer goods transferred within the state sector. The discussion was partly a result of Stalin's publication ofEconomic Problems of Socialism in the U.S.S.R.A number of Chinese economists disagreed with Stalin's assertion that the law of value and the concept of commodity production and exchange did not apply to the state sector.

Improve the System of Pricing

In connection with the article by E. Liberman, I should like to emphasize the particularly pressing nature of the problem of price formation. In the Program of the CPSU, we read: "It is necessary continually to improve the price system, bringing it into accord with the tasks faced in the building of communism…"

Analysis of Price Structure

Wholesale prices on the products of heavy industry and freight shipment rates are now being revised in accordance with the resolution adopted at the July 1960 Plenary Session of the CPSU Central Committee. As N. S. Khrushchev pointed out at the November 1962 Plenary Session, it is impossible to eliminate many serious shortcomings in production planning, to realize complete cost accounting, and to provide the conditions essential for the profitable operation of enterprises without a correct solution of the problem of price formation and the establishment of scientifically substantiated prices.

New Equipment and Prices

Speaking at the November Plenary Meeting of the Central Committee of the CPSU Comrade N. S. Khrushchev emphasized the following: "Without the correct solution of the problem of price formation and the establishment of scientifically substantiated prices it is impossible to eliminate many serious shortcomings in the planning of production, implement an overall cost accounting system, and ensure conditions for the profitable operation of enterprises."

Revision of Wholesale Prices and Rates

Problems of price formation have always commanded special attention in our country. This is understandable, since prices play an important role under conditions of commodity-money relations. They are the monetary expression of the value of goods and a measure of the aggregate outlays of social labor. Prices serve as a major instrument in implementing the economic policy of the Soviet State. With the help of prices, labor is rationally distributed by branches of production, the necessary proportions between consumption and accumulation are established and maintained, economic ties between enterprises are developed and perfected, and the principle of self-supporting operations [khoziaistvennyi raschet] is consolidated.

Revision of Wholesale Prices in Heavy Industry and Some Problems of Price Formation in the USSR

The revision of wholesale prices in all branches of heavy industry, now being carried out in accordance with the decisions of the July 1960 Plenum of the Party Central Committee, is an important step in improving the system of planned price formation. This revision, which should be completed in 1962, will further enhance the role of prices as a stimulus to production, the more rapid introduction of new technology, and the efficient utilization of productive assets and labor resources in all branches of the national economy.

Problems of Price Formation in Transport

The Soviet government has, at all stages of the upbuilding of socialism, made successful employment of such economic categories as cost and price, including transport charges, for the purpose of conserving outlays of the labor of society. At the present time, when the Soviet people are proceeding to carry out the grandiose program for the upbuilding of communism outlined by the Twenty-first Congress of the CPSU, the significance of these categories will become even greater. Railway tariffs are planned prices for transportation founded upon the labor socially necessary for this purpose, or, in other words, the costs of transport. The point of departure in determining railway freight rates is the average cost, in the industry as a whole, of a unit of transport service.

The Law of Value and the Problem of Price Formation in the USSR

During the past year many articles and two reviews were printed in "Problems of Economics" devoted to the operation and utilization of the law of value under socialism, particularly in connection with price formation in the USSR.

Some Questions of the Theory and Practice of Price Formation in the U.S.S.R.

In the discussion on commodity production and the operation of the law of value under socialism, particularly great stress is given to the problems of price formation. This is easy to understand. Price formation is one of the most important levers of the planned, balanced application of the law of value to the management of the economy. During the discussion, many interesting considerations were offered and suggestions made, which have a theoretical as well as a practical meaning. Still, some economists are trying to treat the problem of price formation from a position of "pure theory," so to speak, neglecting the many years of practical experience in this field. These comrades are advancing certain practical proposals, based on abstract theoretical formulas, with which, in our opinion, it is impossible to agree.