Definition

In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.

In all modern economies, the overwhelming majority of prices are quoted in (and the transactions involve) units of some form of currency. Although in theory, prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen.

In Finance there are a number of pricing units that fall outside the categories of currency and barter. For example a monetary loan can be priced in percentage point units using the formula (100% - Interest Rate). The total amount of interest payable depends upon the loan amount and the period of the loan, and since each potential borrower has different loan requirements, it is not sensible to use the total amount of interest payable as the price. Other examples can be found in the area of Financial Derivative pricing.

Price can sometimes alternatively refer to the quantity of payment ''requested'' by a seller of goods or services, rather than the eventual payment amount. This requested amount is often called the asking price or selling price, while the actual payment may be called the transaction price or traded price. Likewise, the bid price or buying price is the quantity of payment ''offered'' by a buyer of goods or services, although this meaning is more common in asset or financial markets than in consumer markets.

Economic Definition

Economists sometimes define price in a more general or abstract sense to the widely understood definition above. According to this view, price is defined as the ratio between the quantity of goods that are exchanged for each other in a transaction.

For example, consider the case of two people exchanging goods, say 5 apples for 2 loaves of bread. An economist might say that the price of apples was 2/5 = 0.4 loaves of bread. Likewise, the price of bread would be 5/2 = 2.5 apples. Hence if we consider that currency is simply another type of good like apples or bread, then this conception forms the general case of the widely held definition outlined above.

However it is far from clear that this generalisation serves any useful purpose at all. As noted above, in all real economies prices are virtually always quoted in (and transactions always involve) units of currency. Hence, an alternative view is that the most basic and general definition of price is that involving exchange of goods or services for money, and that the exchange ratio between two goods is simply derived from the two individual prices.

The exchange ratio is sometimes referred to as the real price, while the price quoted in money referred to as the nominal price.

This distinction is sometimes made to make sense of inflation. When all prices are quoted in terms of money units, and the prices in money units change more or less proportionately, the ratio of exchange may not change much. In the extreme case, if all prices quoted in money change in the same proportion, the relative price remains the same.

It is now becoming clear that the distinction is not useful and indeed hides a major confusion. The conventional wisdom is that proportional change in all nominal prices does not affect real price, and hence should not affect either demand or supply and therefore also should not affect output. The new criticism is that the crucial question is why is there more money to pay for the same old real output. If this question is answered, it will show that dynamically, even as the real price remains exactly the same, output in real terms can change, just because additional money allow additional output to be traded. The supply curve can shift such that at the old price, the new higher output is sold. This shift if not possible without additional money.

From this point of view, a price is similar to an opportunity cost, that is, what must be given up in exchange for the good or service that is being purchased. For example, if x=1 and y=2, the relative price of x in terms of y is 2, and the price of y in terms of x is 0.5.

Price Theory

Theory of price asserts that the market price reflects interaction between two opposing considerations. On the one side are demand considerations based on marginal utility, while on the other side are supply considerations based on marginal cost. An equilibrium price is supposed to be at once equal to marginal utility (counted in units of income) from the buyer's side and marginal cost from the seller's side. Though this view is accepted by almost every economist, and it constitutes the core of mainstream economics, it has recently been challenged seriously.

When an identical item (e.g. a commodity) is for sale in multiple locations, the Law of one price is generally believed to hold, essentially stating that the cost difference cannot be greater than that incurred by shipping, taxes etc.

Price and Value

There was time when people debated use-value versus exchange value, often wondering about the paradox of value (diamond-water paradox). The use-value was supposed to give some measure of usefulness, later refined as marginal benefit (which is marginal utility counted in common units of value) while exchange value was the measure of how much one good was in terms of another, namely what is now called relative price.

Austrian theory

The last objection is also sometimes interpreted as the paradox of value, which was observed by classical economists. Adam Smith described what is now called the ''Diamond – Water Paradox'': diamonds command a higher price than water, yet water is essential for life, while diamonds are merely ornamentation. One solution offered to this paradox is through the theory of marginal utility proposed by Carl Menger, the father of the Austrian School of economics.

As William Barber put it, human volition, the human subject, was "brought to the centre of the stage" by marginalist economics, as a bargaining tool. Neoclassical economists sought to clarify choices open to producers and consumers in market situations, and thus "fears that cleavages in the economic structure might be unbridgeable could be suppressed".

Without denying the applicability of the Austrian theory of value as ''subjective'' only, within certain contexts of price behavior, the Polish economist Oskar Lange felt it was necessary to attempt a serious ''integration'' of the insights of classical political economy with neo-classical economics. This would then result in a much more realistic theory of price and of real behavior in response to prices. Marginalist theory lacked anything like a theory of the social framework of real market functioning, and criticism sparked off by the capital controversy initiated by Piero Sraffa revealed that most of the foundational tenets of the marginalist theory of value either reduced to tautologies, or that the theory was true only if counter-factual conditions applied.

One insight often ignored in the debates about price theory is something that businessmen are keenly aware of: in different markets, prices may not function according to the same principles except in some very abstract (and therefore not very useful) sense. From the classical political economists to Michal Kalecki it was known that prices for industrial goods behaved differently from prices for agricultural goods, but this idea could be extended further to other broad classes of goods and services.

Price as productive human labour time

Marxists assert that value derives from the volume of socially necessary abstract labour time exerted in the creation of an object. This value does not relate to price in a simple manner, and the difficulty of the conversion of the mass of values into the actual prices is known as the transformation problem. However, many recent Marxists deny that any problem exists. Marx was not concerned with proving that prices derive from values. In fact, he admonished the other classical political economists (like Ricardo and Smith) for trying to make this proof. Rather, for Marx, price equal the cost of production (capital-cost and labor-costs) plus the average rate of profit. So if the average rate of profit (return on capital investment) is 22% then prices would reflect cost-of-production plus 22%. The perception that there is a transformation problem in Marx stems from the injection of Walrasian equilibrium theory into Marxism where there is no such thing as equilibrium.

Confusion between prices and costs of production

Price is commonly confused with the notion of cost of production as in “I paid a high cost for buying my new plasma television”. Technically, though, these are different concepts. Price is what a buyer pays to acquire products from a seller. Cost of production concerns the seller’s investment (e.g., manufacturing expense) in the product being exchanged with a buyer. For marketing organizations seeking to make a profit the hope is that price will exceed cost of production so the organization can see financial gain from the transaction. Finally, while pricing is a topic central to a company's profitability, pricing decisions are not limited to for-profit companies. Non-profit organizations, such as charities, educational institutions and industry trade groups, also set prices, though this is often not as apparent. For instance, charities seeking to raise money may set different “target” levels for donations that reward donors with increases in status (e.g., name in newsletter), gifts or other benefits. While a charitable organization may not call it a price in their promotional material, in reality these targets are prices since they specify a cost that must be paid by buyers (donors) in order to obtain something of value.

Price Point

The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points. For example, Dollar General is a general store or "five and dime" store that sets price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among others). Other stores (such as dollar stores, pound stores, euro stores, 100-yen stores, and so forth) only have a single price point ($1, £1, 1€, ¥100), though in some cases this price may purchase more than one of some very small items. Price is relatively less than the cost price.

See also

References

Milton Friedman, ''Price Theory''.

George Stigler, ''Theory of Price''.

Simon Clarke, ''Marx, marginalism, and modern sociology: from Adam Smith to Max Weber'' (London: The Macmillan Press, Ltd, 1982).

Makoto Itoh & Costas Lapavitsas, ''Political Economy of Money and Finance''.

Pierre Vilar, ''A history of gold and money''.

External links

Cost of Living - Contains prices of goods and services worldwide

Wages, Prices & Living Standards: The World-Historical Perspective

Historicalstatistics.org Links to historical statistics on prices

Price converter and calculator - Converting price between different currencies and calculating price in various measurements.

Category:Competition Category:Marketing Category:Pricing

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name	Jessie J
alt	f
background	solo_singer
birth name	Jessica Ellen Cornish
alias	Jessie J
birth date	March 27, 1988
birth place	Chadwell Heath, London, England
genre	R&B;, pop, hip hop, soul
years active	2006–present
label	Lava, Universal Republic, Island, Gut
website
notable instruments	}}

Jessica Ellen Cornish (born on 27 March 1988), better known by her stage name Jessie J, is an English singer-songwriter, currently signed to Island Records. She began her career as a songwriter for artists including Chris Brown and Miley Cyrus. Her debut single, "Do It Like a Dude", was released in November 2010 and peaked at number two on the UK Singles Charts. Follow-up single "Price Tag" reached number one in the United Kingdom, France, Ireland and New Zealand, and reached the top 10 in nineteen other countries. Her debut album, ''Who You Are'', was released in February 2011 and charted at number two on the UK Albums Chart. In February 2011 Jessie J won a BRIT Award, Critics' Choice. It was revealed in October 2011 that Jessie J will be a coach and a mentor on the television show, ''The Voice UK''.

Early life

Jessie J was born Jessica Ellen Cornish in Chadwell Heath, London and was educated at Mayfield High School in the London Borough of Redbridge. She attended Colin's Performing Arts School and as an eleven year old was cast in Andrew Lloyd Webber's West End production of ''Whistle Down the Wind''. Jessie has two sisters, who are five and seven years older than her, who were both head girls at school.

Unlike her academic sisters, Cornish has stated she was "never really that good at anything". She said, "At school they were like 'oh, you're a Cornish girl' and they kind of expected me to be the same as my sisters. Give me something to draw or an outfit to pick for someone, or hair, make-up, acting, write a song, I'm fine with it, but anything to do with sums – it was never my thing." She also said she never based her intelligence on her exam results. She also said she was always good at singing and it was her "thing".

At the age of 16 she began studying at the BRIT School and at 17 she joined a girl group named "Soul Deep". She graduated in the class of 2006 along with singers Adele and Leona Lewis. At 18 she suffered a stroke.

Music career

2006–2009: Career beginnings

Jessie J was signed to Gut Records, recording an album for the label, but the company went bankrupt before any material was released. She then found success as a songwriter, gaining a Sony ATV publishing contract. She was also the support act for Cyndi Lauper during Lauper's UK dates of her 2008 Bring Ya To The Brink tour (Lauper invited J to join her on stage for the performances of Girls Just Want To Have Fun). Jessie has also written lyrics for artists such as Chris Brown and Miley Cyrus, including "Party in the U.S.A.".

Jessie J was also part of a girl band, called 'Soul Deep', for two years, however she left due to thoughts that "it wasn't going anywhere". Despite people thinking that her first notoriety was through YouTube, Jessie was signed for four years before her first video was posted.

Jessie first came to the attention of Lava Records when her publisher at Sony/ATV, Rich Christina, sent Lava president Jason Flom a link to her MySpace page, which the record executive loved. After seeing an impressive U.S. showcase, Lava was, along with several other labels, keen to sign the artist but progress was hampered by her management's insistence on, what Flom called, a "crazy deal", and their refusal to let Jessie speak to any labels directly. Despite this, Senior Director of A&R; at Lava, Harinder Rana, made surreptitious efforts to meet Jessie on her own in winter of 2008. Later in the year a change in management to Sarah Stennett and Nadia Khan of Crown Music allowed record deal negotiations to take place. Jessie eventually signed with Lava as part of a joint venture with Universal Republic.

2010–present: ''Who You Are''

Jessie J began recording her debut studio album in 2006 and it was completed on 19 January 2011. She revealed that "Big White Room" would be on the album and was written from an experience she had when she was 11 years old, although she wrote the song at age 17, in hospital, where a ward mate, a little boy, died. Jessie J says the album's title track, "Who You Are", is one of her proudest creations, she said the song is a "positive role model for young people" and "I always say that I'm half-artist, half-therapist"

In late 2010 Jessie J released her first single, "Do It Like a Dude" which was co-written with George Astasio, Tj Normandin, Jason Pebworth, Jon Shave, Kyle Abrahams and Peter Ighile. Originally, she wrote the song with Rihanna in mind because "Rude Boy" was released at the time, partly inspiring the song. She then sent the song to her label, Island Records, before sending it to Rihanna's management. Island insisted the song become Jessie J's first single. She wishes to perform the song with Rihanna at one point. The single gained positive reception from critics. The single charted at number two on the UK Singles Charts. Her follow-up single "Price Tag" was released in late January 2011. This was written by Jessie J, Lukasz Gottwald, Claude Kelly, and Bobby Ray Simmons, Jr. and charted at number one in the top of the charts. "Price Tag" was released in the United States on 1 February 2011 and peaked at 23 on the ''Billboard'' Hot 100. "Price Tag" also charted at number-one in New Zealand and Ireland and is the most successful online video J has released. As of October 2011, the video has generated over 148 million views on Youtube and Vevo, making it the 22nd most viewed music video of all time. Her first American television appearance was as the musical guest on the 12 March 2011 episode of NBC's ''Saturday Night Live''.

On 25 February 2011 her debut album, ''Who You Are'', was released. The album first entered the charts on 6 March 2011 where it charted on the UK Album Charts at number two. The album charted into the top ten in a number of countries and number 11 in the United States.After the release she went on to release a third single from the album, "Nobody's Perfect". MTV reported that the single is, so far, only confirmed for release in the United Kingdom. The album's fourth single was "Who's Laughing Now". "Domino" was her second US single. The Dr. Luke-produced track was sent to mainstream radio on 6 September 2011. With the success of ''Who You Are'' in North America, Jessie was chosen to tour as the opening act for American pop artist Katy Perry's ''California Dreams Tour'' in 2011 but after she was unable to fully recover from her injuries during rehearsals she was forced to pull out under the doctor's orders.

Jessie J served as the house artist at the 2011 MTV Video Music Awards, performing several of her original songs along with covers around commercial breaks.

In early 2011 she suffered a panic attack on stage after she was forced to perform in the dark. "I did a gig recently and had a panic attack on stage," she told ''NOW''. "The night was called 'Black Out' and I had to perform in the dark. I asked them to turn on the lights and they didn't. I was onstage in pitch black and, because I couldn't see anything, I started to panic. It was awful." James Morrison's third studio album, ''The Awakening'' features a collaboration with Jessie J called "Up", the song was released as a single on 4 December 2011. On 4 October Jessie announced that she will be one of four coaches for new BBC program, ''The Voice UK''.Jessie J re-released "Who You Are" on 9 November 2011, featuring the regular tracks plus "Domino" and two new songs. "Domino" became her second top 30 hit in the U.S., following the success of "Price Tag". The song also peaked at number 1 in January 2012 in the UK, before it was even officially released there.

Personal life

On 12 June 2011 at the Capital Radio Summertime Ball, Jessie ruptured several tendons in her foot during rehearsals, and performed her set the following day while sitting on a gilded throne. For her appearance at Glastonbury Festival 2011 on 25 June 2011, she performed on the throne again, claiming her physician had told her not to perform with her broken foot which would take six weeks to heal. Jessie J was scheduled to play at several festivals throughout the summer, however it was reported on 1 July 2011 that she would not be able to attend T in the Park, T4 On The Beach, Wembley:Orange, iTunes Festival, Lovebox and Oxegen due to the injuries to her foot. Jessie J personally tweeted before surgery; "Keep making nervous jokes with the doctor and he keeps looking at me blankly. Which is making me laugh even more. It's getting serious. I just took my nose stud out." Tweeting after the surgery, she wrote: "Can't keep tweeting. Still very dizzy and being sick. But I'm OK, I got through it." Her record label released an official statement on 30 June 2011 that under strict orders from her doctor, she will not be able to perform for a number of weeks so she can heal and recuperate properly. She returned to the concert circuit in late August, including sets at the V Festival and The Big Chill. For the 2011 VMA's she was still in a cast and using the throne to keep off of it.

Jessie J confirmed on 2 August 2011 that she would be shaving her hair off for charity in 2012. Speaking via her official Twitter account she said: “It’s hair, It will grow back. Even if it takes 2 years, if it saves lives it’s worth it. Even if its 1 life that’s something.”

Jessie J is openly bisexual and stated in an interview on the "In Demand" radio show on March 3, 2011, "I've never denied it. Whoopie doo guys, yes, I've dated girls and I've dated boys – get over it."

Music and voice

Although she was first identified as a soul singer, she primarily records songs of contemporary R&B; and pop music with hip-hop influences.

Music critic Matthew Perpetua of Pitchfork Media compared Jessie J to her peers Adele and Amy Winehouse, but admitted she was missing something: "Whereas Adele and Winehouse also have powerhouse voices, they fit into clear aesthetic niches and invest their songs with depth and humanity. Jessie J doesn't have even a fraction of their restraint." Perpetua added: "Her idea of showcasing her gift is to shoot for a blaring melisma on "Mamma Knows Best" that makes Christina Aguilera seem as subtle as Joni Mitchell by comparison." Ailbhe Malone of the music magazine NME also recognized Cornish's "undeniably potent voice". However, she pointed out the possible "identity crisis" that might have been caused by Jessie's songwriter past: "This is an album of singles for other artists. There’s Rihanna Jessie (‘Do It...’), Perry Jessie (‘Abracadabra’), Pixie Jessie (‘Mamma Knows Best’), Ellie Jessie ('Big White Room')."

Caroline Sullivan of The Guardian shared her positive opinion about the singer, saying that "if any singer has the potential to be the British Katy Perry or Pink, with the accompanying millions of sales, it's her". Sullivan also complimented Cornish's attitude: "[Her songs] are delivered with a confidence that money can't buy." Entertainment Weekly's music critic Adam Markovitz said of Jessie: "The 23-year-old Brit has all the tools, from a monster voice to an ear for hooks — she co-wrote Miley Cyrus' Party in the U.S.A. — and a manic persona that's equal parts Katy Perry, Kristin Chenoweth, and Alice Cooper.

Discography

''Who You Are'' (2011)

Filmography

+Television	Year	! Title	! Role	Notes
2012	''The Voice UK''	Herself

Awards and nominations

References

External links

Category:1988 births Category:Living people Category:Bisexual musicians Category:Electronica musicians Category:English female singers Category:English mezzo-sopranos Category:English pop singers Category:English rhythm and blues singers Category:English singer-songwriters Category:English-language singers Category:LGBT musicians from the United Kingdom Category:LGBT people from the United Kingdom Category:People educated at the BRIT School Category:Singers from London Category:Stroke survivors Category:The Voice judges Category:People from Chadwell Heath

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