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Marketing - Ethical Pricing


The Ethics of Price Discrimination Price discrimination is the practice of charging different customers different prices for the same product or service. The ethical status of price discrimination is ambiguous: while many people intuitively consider it unfair, economists argue that in many cases the practice is likely to lead to higher welfare than the uniform pricing alternative—in some cases for each and every party to the transaction. This paper argues that in itself the fact that people are treated differently does not make a practice necessarily unethical. The paper concludes by arguing that the real ethical issue in cases of price discrimination is that the practice is often used as a way to take advantage of the situation of special need or the ignorance of some customers, and that this is what makes the practice unethical in such cases, not price discrimination as such. 2009 pdf






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Status: 28. September 2011