In the perception of most citizens, the process of transition from a centralized economic regime to a market one is associated primarily with such a concept as competition. Free pricing is an integral element of the new model. Let us consider in more detail what it represents. 
Valuation Options
Each enterprise has the right to determine the value of its services or products. However, organizations should consider the market situation. According to her, they can choose the following options:
- Free pricing. It implies the absence of any obligations from the buyer and seller before the transaction.
- Contractual value setting. In this case, the consumer and the seller independently enter into a transaction, but after or before it have obligations.
- Futures. It represents an upcoming purchase at the cost set in the contract. This option is used to insure the assets of the company from price fluctuations.
- Option. It is an agreement in which one participant provides another with the right to acquire / sell a financial instrument. This may be the purchase / sale of stocks, currencies, interest rates, bonds, futures contract.
- Establishment of value in the framework of full or partial monopolization.
Free Pricing: A Type of Economic System
In the transition from a command-administrative model of management to a market one, the practice of assigning the cost of production by the state gradually disappears. This function is transferred to the market. Free pricing is the most important sign of establishing market relations. This kind of transformation is commonly called value liberalization. It represents the actual release of prices from tight state control. The government abandons the mechanism of direct direct cost determination of goods and services. Meanwhile, reducing the process of transition to a market model of managing exclusively to price liberalization will act as excessive simplification, primitivization of the multifaceted picture of all transformations. 
Free Pricing Terms
In the framework of the market model of management, the value of goods and services is established depending on supply and demand. This differs from free pricing directive. Under the influence of supply and demand, the cost of a particular service or product at a certain point in time tends to a single indicator. With the improvement of relations, this tendency extends to the entire market. Free pricing is the determination of value by the buyer and seller in accordance with the sales agreement. In a market environment, this phenomenon is possible based on the balance of supply and demand. Pricing of this type implies the freedom to choose a model of behavior by the seller and the buyer.
Signs of market relations
Free pricing involves various opportunities for an enterprise to make a profit. To increase revenue, for example, companies reduce the cost of services and products by offering discounts. The following are the external signs of a market model in which free pricing operates:
- The value of the supply of goods is equal to the monetary value of the demand for it. As a result, in general, in a market, the sum of the prices of supply and demand is equal.Along with this, value is in constant motion.
- Enterprises have stocks of products and capacity reserves. This, in turn, ensures uninterrupted trading.
- There are no lines characteristic of a scarce market. This condition is achieved through the price adjustment function. Cost rises to balance demand.
- Price elasticity. Changes in value directly affect supply and demand, as well as vice versa.
- A decrease / increase in the price of one product implies a change in it to other types of goods that are present on the market but are not used in its production.
- Entries and exits on the markets of both producers and consumers are noted.
Specificity
Free pricing implies the absence of external constraints. The cost is not assigned by anyone. It is formed as a result of bidding on the basis of a mutual agreement of the seller and the buyer in the interaction of supply and demand. Prices that are created in such conditions are commonly called market prices. In the state model of management, the management of which is carried out mainly by administrative and administrative methods, a fairly solid, to one degree or another, stable value for a particular product dominates. It can change only after a rather long period.
Those supplement contract prices, which also last for a long time. They are established on the basis of agreements between procurement enterprises and manufacturers. In certain sectors floating free prices may apply. They change by agreement between the consumer and the seller depending on the state of supply and demand. In the market model, the picture is different. The key here is the free price. It is followed by the agreed value. The lowest specific gravity are the prices that are assigned by the state.
Conclusion
It should be noted that identifying the market model with the economy of absolute emancipation of prices would be unlawful. In fact, the value in it is formed not only as a result of bargaining between consumers and sellers. Of no less importance is the market situation, the chosen policy of producers. Thus, price should be considered in a broad sense as a product of market relations. Moreover, the principle of the market model provides for minimizing government intervention in the process of determining the cost of services and goods.
