In theory , price controls have no place in a free market economy. The idea is simple: let supply and demand determine market prices, and let healthy competition do the rest. In such an ideal world, the government would play referee, not participant. Suggested Retail Prices (SRPs), for instance, should logically be set by manufacturers or distributors—not by government agencies. And yet, as with many things, theory doesn’t always line up with reality. In the Philippines, the concept of the Maximum Suggested Retail Price (MSRP) appears to be something of a local innovation. It’s not widely seen—or even recognized—in other countries. While the term “suggested” implies a degree of flexibility, the inclusion of “maximum” adds a controlling tone that veers uncomfortably close to a mandated ceiling. This duality conflicts with the principles of a free market economy, where private businesses ideally have the autonomy to price their products based on value, cost, and demand. This raises a...
Online edition of The Ilocos Times, a community newspaper based in Laoag City, Ilocos Norte.