"Pricing Standards" as an alternative to flat price caps and/or unregulated pricing.
Basically, instead of fixing prices directly, my idea is regulating how prices are formulated.
Based on satisfaction of the following principles, which prices would be judged on:
- Empirical
- Transparent
- Formulaic
- Reasonable
The idea behind this is that companies whose prices don't hold up to real scrutiny would lose customers and would very quickly have to implement a proper decision making process that's more nuanced.
This would ideally eliminate the arbitrariness of pricing more generally and force companies to take into account more factors than just profitability. Ideally, this should improve welfare across the board due to this.
Alongside this, I would add various other rules like banning dynamic pricing.