Problem
Inequitable bargaining
Other Names:
Price discriminationDiscriminatory 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. Broader Problems:
Unfair tradingAbusive sales techniquesUnethical commercial practices Aggravates:
Sexual discriminationCredit discriminationVariation of prices in the same areaProhibitive cost of goods and servicesRacial discrimination in according financial loansVariation of prices for the same product in different places Strategies:
Reducing price discriminationReducing inequality of bargainingPreserving inequality of bargaining Subject(s):
Commerce → Commerce Commerce → Merchants
Commerce → Purchasing, supplying
Commerce → Business enterprises
Related UN Sustainable Development Goals:
Problem Type:
F: Fuzzy exceptional problems Date of last update
04.10.2020 – 22:48 CEST