price formation

USAGE SUMMARY

The phrase "price formation" is a correct and usable phrase in written English.
You can use it when referring to the process of setting or determining prices for a product or service. For example, "The company used market research to inform their price formation process."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

51 human-written examples

We make information likely to impact market price formation publicly available on our website in compliance with Remit".

The Guardian - Business

Price formation is at its most efficient with compulsory publication of pre-trade intentions and trade execution.

The Economist

Plenty of exchanges also sound warnings about the danger of a fragmentation of liquidity that could damage the process of price formation.

The Economist

The court also says that the policy should, where possible, avoid interfering with price formation (which may refer to setting targets for bond yields).

The Economist

"Russia is ready to be the one that will carry out research into the problem of price formation for gas," he said, according to the Russian Interfax news agency.

The New York Times

"Underlying inflationary pressures are limited in the U.S. and no risks of inflation spikes at the final stages of the price formation chain are expected anytime soon," said Annalisa Piazza, an economist at Newedge Strategy.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

9 human-written examples

This method relies on fuzzy logic to formulate a decision making when certain price movements or certain price formations occur.

Fuzzy Sets and Systems

If information sources differ in their publicity then price-formation and expectations-formation processes separate, causing output gaps to open.

Journal of Monetary Economics

A fossil plant discovery from the Price (Pocono) Formation of southeastern West Virginia provides new information on the poorly known compression floras of the Lower Mississippian of North America.

Review of Palaeobotany and Palynology

These three classes of models attempt to model the price series formation and interactions by abandoning the structure of a fully specified model.

Agricultural and Food Economics

To address the methodological challenges inherent in the transition from equilibrium-based analytical models to agent-based simulation, we combine traditional deductive optimization models of behavior at the agent level with inductive models of price expectation formation.

Computers, Environment and Urban Systems

Expert writing Tips

Best practice

When discussing market dynamics or economic policies, use "price formation" to refer to the underlying processes that determine prices, rather than simply "pricing".

Common error

Avoid using "price formation" when you simply mean the act of setting a price. "Price formation" describes the entire process, including market forces and other factors, not just the final decision.

Linguistic Context

The phrase "price formation" functions as a noun phrase, typically acting as the subject or object of a sentence. It describes the process or mechanism by which the price of a good, service, or asset is determined in a market. Ludwig AI confirms that the phrase is correct and usable.

Expression frequency: Very common

Frequent in

Science

40%

News & Media

30%

Formal & Business

20%

Less common in

Encyclopedias

5%

Wiki

3%

Reference

2%

Ludwig's WRAP-UP

In summary, "price formation" is a commonly used noun phrase referring to the process by which prices are determined in a market. Ludwig AI validates its correctness and usability. It's frequently used in formal contexts such as science, news, and business. The phrase is central to discussions about economics, finance, and market dynamics, and is influenced by factors like supply and demand, government policies, and market sentiment. While often used interchangeably with "pricing mechanism" or "price discovery", it is important to use "price formation" when discussing the entire process, not just the act of pricing.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

price determination

Similar to "price formation" but emphasizes the act of deciding on a price.

pricing mechanism

Focuses more on the specific methods or systems used to determine prices.

market pricing

Emphasizes the role of market forces in setting prices.

price discovery

Highlights the process of finding the equilibrium price in a market.

setting prices

A more general term for the act of establishing prices.

establishing price levels

Focuses on the final price points that are set in the market.

rate setting

Used in contexts where prices are regulated or administratively determined.

valuation process

Highlights the steps taken to assess the worth or value of an asset before pricing.

costing methodology

Focuses on the methods used to calculate costs, which influence price.

competitive pricing

Refers to price setting strategies based on what competitors are charging.

FAQs

How does supply and demand relate to "price formation"?

Supply and demand are fundamental drivers in the process of "price formation". The interaction of these forces determines the equilibrium price in a market.

What factors influence "price formation" in financial markets?

Many factors influence "price formation" in financial markets including market sentiment, news events, economic indicators, and trading volumes.

What's the difference between "price formation" and "price discovery"?

"Price formation" is the overall process by which prices are determined, while "price discovery" specifically refers to identifying the equilibrium price through market interactions.

Can government intervention affect "price formation"?

Yes, government policies like subsidies, taxes, and regulations can significantly influence the natural "price formation" process in various markets.