Problem

Inequitable bargaining

Other Names:
Price discrimination
Discriminatory sales methods
Active prejudice in business
Incidence:
There are no federal laws in the USA which outlaw racial discrimination in the sale of goods and services. Car dealers put customers through the unpleasantness of haggling because some of the make 50% of their profits from 10% of their sales. Their sales technique is essentially a search for suckers. Forcing customers to bargain lets dealers target the least informed, least aggressive, and most rushed. An academic study in the USA involving 90 different car dealerships showed that for the same model car with exactly the same option, a white woman pays on average $150 more than a white man, a black man pays $300 more, and a black woman almost $900 more, or triple the mark-up paid by white men.
Problem Type:
F: Fuzzy exceptional problems
Related UN Sustainable Development Goals:
GOAL 12: Responsible Consumption and Production
Date of last update
17.06.2018 – 22:29 CEST