verðlagsbundnar
Verðlagsbundnar is an Icelandic term describing goods and services whose prices are determined or constrained by government regulation rather than by free-market forces. The word combines verðin, meaning price, with lag, a root associated with regulation or systematic rules, and bundnar, meaning bound or controlled. In practice, verðlagsbundnar prices are set through official tariffs, caps, or formula-based adjustments tied to costs, inflation, or social objectives.
The concept covers several mechanisms used by authorities to influence pricing. Price ceilings cap what consumers
Rationale for verðlagsbundnar pricing includes protecting essential access, reducing inequality, stabilizing inflation, and preserving public welfare.
Policy considerations include the risk of shortages or reduced investment if prices are kept too low, the
See also: price control, price regulation, tariff regulation, subsidies, social policy.