Pricing and Rate Making

Pricing and rate making in market design refer to the process of setting prices for goods and services in a way that balances supply and demand. It involves analyzing costs, competition, and consumer behavior to establish fair and efficient prices. The goal is to ensure that prices reflect real market conditions, encourage optimal resource use, and promote fairness among consumers and producers. By designing effective pricing structures, markets can function more efficiently, leading to better outcomes for both buyers and sellers.