The Government Intervention in Price Mechanisms

This paper is a systematic literature review of the government intervention in price mechanisms. Government intervention is when the government takes legal measures to address market failure. Its goal is to convince individuals, groups, and organizations to embrace social and economic decisions. Government policies are created to assist administrative entities to implement systems and attain long-term social, environmental, and economic sustainability. The government frequently imposes pricing controls to protect the interests of the most vulnerable consumers, to allow investment in priority areas that are critical for the country's rapid economic growth, to avoid monopolistic exploitation by multiple businesses in a single industry, and to ensure an appropriate level of pricing stability. The pricing mechanism is a method of market intervention that can affect the prices of products and services. It composes the necessities for people's survival and well-being. In addition, the support price policy subsidizes or regulates the price of a commodity. Market Price Support (MPS) is the most prevalent type of assistance given to Filipino farmers. It primarily assists rice farmers by safeguarding them against exploitation and ensuring that they are fairly rewarded. As a result, governments, companies, producers, and consumers all need to work together to create a system that ensures equality