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Pricing Methods

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20th MEETING OF THE VOORBURG GROUP Helsinki, Finland 2005 Producer price index for services Pricing methods by Aurél Kenessey (CBS, Netherlands) Benoît Buisson (INSEE, France) Richard McKenzie (OECD) 2 1. Introduction The term ‘pricing method’ in the context of compiling price indices would probably be regarded by most price statisticians as a common concept. However when one attempts to find a definition for this concept, or indeed a definition for various types of ‘pricing methods’, the inadequacy of the current literature becomes apparent. This is particularly true in the case of producer price indices for service industries (SPPI), where defining pricing methods is crucial in many respects. This paper aims to review references to ‘pricing methods’ in the current literature in respect to SPPI, and to develop a list of criteria which may help to distinguish between different pricing methods used in SPPI and how th...

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