Modern economics seeks market equilibrium price based on the cross of supply and demand curves, and which depends on such presuppositions that consumer preference, producer costs as well as the signals of product quality are clear. However, the realistic market is full of serious uncertainty, and production cost, consumption utility and quality signal are all the functions of the price, so that it is impossible to obtain equilibrium price based on the cross of supply and demand curves. In fact, in uncertain market, people usually predict the prices of goods and services with the help of some anchoring values, which contribute to contracts and trading. And then, the price anchoring values of different products depend on a hierarchical sequence based on a certain rule, then bringing about the tournament-based market pricing system: the price levels of different commodities and the wage levels of different labors are often related with their levels. Furthermore, what the tournament-based pricing system abides to is not the principle of production cost or the principle of labor input, also not the principle of objective function or the principle of output contribution. As a result, tournament-based pricing system is neither fair nor efficient. The basic reason for why the tournament-based pricing system is so popular lies in that the power structure in the market economy is asymmetric; especially, the fragmented power makes few uppers people have the strong power to make market pricing rule, and the pricing principle is only in favor of few sovereigns to achieve their interest maximization and few riches to achieve their utility maximization. Therefore, based on the combination of anchoring effect and power analysis framework, we can reveal the unified tournament-based pricing system as well as its interest orientation in uncertain market. Based on the above analysis, this paper brings about some profound theoretical and practical significance.（1）By introducing the market uncertainty, we can deeply make out the limitations of neoclassical price theory, and a better explanation of the specific location of the demand（and supply）curve and it moving.（2）By considering the fuzziness of goods value and the variability of utility, we can obtain more real intermittent supply and demand curves, and then identify the different forms of long-term and short-term supply and demand curves.（3）By investigating the secondary properties, we can understand the production of all kinds of different products, and provide a better explanation of the prices of sharing cost products.（4）By studying the anchoring effect, we can realize that the product price usually has a certain range, confirming the capital-interest theory of new Cambridge school.（5）By analyzing the characteristics of tournament and the social power structure, we can discern the pricing strategy of firms and the input of the non-productive resources, and then have a better understanding of such phenomena as the proliferation of fake and anti progressive technology development.（6）By investigating the interest orientation embedded in the tournament-based pricing system, we can more profoundly discover the internal defects of market mechanism, so as to provide the basis and direction for the market supervision, income distribution and other public policies. Finally, considering that market pricing is the cornerstone of modern economics, this paper will make a fundamental impact on the modern mainstream economic system.
The Pricing Mechanism in the Market under Uncertainty: A Reflection on Neo-classical Price Theory Based on the Analysis Framework of Psychology and Power
Journal of Finance and Economics Vol. 44, Issue 05, pp. 61 - 82 (2018) DOI:10.16538/j.cnki.jfe.2018.05.005
 Zhu Fuqiang, Merits or demerits: An introspection over the review of MBA Education[J]. Journal of Guangdong University of Business Studies, 2009，（5）：85−91. (In Chinese)
 Zhu Fuqiang, "Cockroaches’ survival" or "elitist eurvival"? A reflection on the decisionmechanism of actual income distribution[J].Social Science Front, 2012,（12）: 33−41. (In Chinese).
 Zhu Fuqiang, How to build the income distribution theory of Chinese economics: Power framework[J]. Journal of Sun Yat-Sen University(Social Science Edition), 2015,（2）: 185−196. (In Chinese).
 Zhu Fuqiang, Market game, power structure and income distribution mechanism: an anatomy on the deep reason of the income gap in current China[J]. Social Science Journal, 2015,（4）: 85−93. (In Chinese).
 Zhu Fuqiang, The analysis logic of modern microeconomics and its deconstruction: from law of demand, supply-demand analysis and to general equilibrium[J]. Guizhou Social Sciences, 2015, （1）：101−111. (In Chinese)
 Zhu Fuqiang, The logic of economic growth: A perspective of new structural economics[M]. Beijing: Peking University Press, 2018. (In Chinese)
 Ayres C E. The theory of economic progress: A study of the fundamentals of economic development and cultural change[M]. Kalamazoo, Mich. : New Issues Press, Western Michigan University, 1978.
 Christman J. The myth of property: Toward an Egalitarian Theory of Ownership[M]. Oxford: Oxford University Press, 1994.
 Cohen G A.Where the action is: On the site of distributive justice[J]. Philosophy and Public Affairs, 1997, 26（1）: 3-30.
 Hausman D M, McPherson M C. Economic analysis, moral philosophy and public policy[M]. Cambridge: Cambridge University Press, 2006.
 Hill R, Myatt T. The economics anti-textbook: A critical thinker's guide to microeconomics[M]. London: Zed Books, 2010.
 Kahneman D. Thinking, fast and slow[M]. New York: Farrar, Straus and Giroux, 2011.
 Keen S. Debunking economics[M]. London: Zed Books, 2001.
 Kristensen H, Gärling T. Anchoring induced biases in consumer price negotiations[J]. Journal of Consumer Policy，2000，23（4）: 445−460
 Lazear E P, Rosen S. Rank-order tournaments as optimum labor contracts[J]. Journal of Political Economy，1981，89（5）: 841−864.
 Mishel L, Frankel D. The state of working America, 1990-1991[M]. Armonk, NY: M. E. Sharpe, 1991.
 Robbennolt J K, Studebaker C A. Anchoring in the courtroom: The effects of caps on punitive damages[J]. Law and Human Behavior，1999，23（3）: 353−373.
 Stiglitz J E. The price of inequality: How today's divided society endangers our future[M]. New York: W. W. Norton & Company, 2012.
 Tool M R , Samuels W J. The economy as a system of power[M]. Transaction Publishers, 1989.
 Von Mises L H E. Human action: A treatise on economics[M]. London: W. Hodge, 1949.
 Von Wieser F. Natural value[M]. New York: A. M. Kelley, 1956.
 Von Wieser F. Theorie der gesellschaftlichen Wirtschaft[M]. Tübingen: A. M. Kelley, 2007.
Cite this article
Zhu Fuqiang. The Pricing Mechanism in the Market under Uncertainty: A Reflection on Neo-classical Price Theory Based on the Analysis Framework of Psychology and Power[J]. Journal of Finance and Economics, 2018, 44(5): 61-82.
Previous: The “Mystery” of Declining Trade Growth: Interpretation from the Perspective of Global Value Chain Division of Labor