Regulation of Prices and Tariffs. Comparative Study: Republic of Moldova, Denmark and Germany

Abstract

Price is the main instrument of competition. In a well-developed competitive environment, price acts as a mechanism for regulating economic processes: it balances supply and demand, linking them to the monetary payment capacity of both producers and consumers. Additionally, in conditions of intense competition, price serves as a stimulus to use the most optimal production methods and to rationalize the available resources. Practice demonstrates that, in the absence of state intervention in economic processes, including price regulation, situations of unfair competition, abuse by producers, and other circumstances with negative impacts on economic processes and the welfare level of the population can arise. State regulation of prices is an attempt to influence the mechanism of their formation through legislative, administrative measures, and various financial tools, with the aim of ensuring the stability of the economic system. Price regulation instruments must ensure access to essential goods for all segments of the population, by maintaining price levels comparable to income levels. Accordingly, each country has its own approaches regarding the necessity and extent of state involvement in economic processes, including in the process of price regulation. CZU: 346.6:338.5(478+489+430); JEL: D4, D180, E7