ABSTRACT
A strategy whereby the prices offered to one party relate to the prices offered to another. For example, a primary care group manager may decide to offer yardstick prices to one hospital based on the prices of similar services from other hospitals. It is sometimes called benchmark pricing. Yardstick pricing may or may not enhance competition. One problem is that the yardstick price offered to one hospital may not relate to the cost of supply from that hospital. See Price cap regulation; Profit; Reduced-form regulation; Reference pricing; Regulation.
