Question

In at least 200+ respond to the following (please include any references used)

Would you consider price discrimination to be ethical or unethical? Why? Provide an example to support your position.

Answer 1

lau taking edgewah lor exchange) and you . and miscallocation IS Commodity / 4 : Съни , PRICE DISCRIMINATION AND SOCIAL WELFARE : IS PRICE DISCRIMIN SOCIALLY JUSTIFIED? ( General eq. appwach of welfau taking eda Pre dis violates the optimum condition of distribution (or exchana and therefore individuals ? of to leads goods blw mal distribution of resourus blw the goods and or contact Pa ipo= diff prices at same I situations not auve Two individuals A a B with IG to As l B to By with ololair - Under P.D, puu lue facing the two indwiduals would not be the same the same goods can be sold and diffit - "A fous Pa price live while B' Lover Po price line which intered at R. where both ind an equating this to thein MRS → ATR, MRSA * MRSB dist Herclage » If the individuels are brought to be Commodity & MY ineq Qie on Louhait une whene satisfaction of both are greater and both au on higher ICso HQ , MRSA EMRS, ut saune prin line P but at R both are not paying - the same price for the two goods due to P.D. of PD is removed, they can X same pric is changed, they will nove to icca S and the welface is increased → [P.D. is not conducive to optinum distribution of goods. - 0 . But PD e justified. * Price discrimination must be held to be supullt to simple monopoly en all those cases in which it leads to an increase of output imot and increass the social welfau and .. justified. * & whne under single uniform puu no production is dan and under P. production becomes possible then PD is socially desirable and justing given if the production of that good is considered essential and suporta . for the society. why? * P.D. may be justified Con grounds of equity but not justified) on the Ground of efficiency in distributive effing - using 0 so it depends upon the the weightage of the respective cite which can conclude whether it is , not just But of good. able or not Copen ended cs scan Scanned with CamScanner argument)

To with single price monopoly - Is price discrimination o socially desirable / Justified. D Distrubutine *Efficiency Allocation of Output lopputiert : - Parceto efficiency criteria Iconsumer -2 goods (nay) MRSay for A & Mrsay for B Output - Joan Robinson If dire to Price Discrimination output & an even worse than monopoly If due to Price Dis crimination output a - - welfare will increase. but Tse it I may balance Distribuitive - Tinefficiency Price Discrimination is needed for table / viable. a Public utilities Railways llcanned with A Doctor's . amScanner Nina

AR AN (4) Equity Guitera ! la requalities of Income & wealth - Iso equitable to change higher price - Rich ' lower Price - poor I h Has a redistributive effect in the economy . eig. Public Distribution System (PDS)' ca Scanned with Cam$canner

I suppose an airline offers two fares - Unrestricted Round Trip a $800 vacation special - $400 cost of Transporting one passanger a $100 with both fares (ris CRIMINATING) A $800+ $400 - 2 x $100 2 $ 1000 IMP. NOTES Consumer Social Swiplis i o Welfare e profi -1000+ 0 z tous onsume Surplay col Scanned with CamScanner

U 2011 13 24 25 26 27 28 29 WEEK 10 - DAY 068-297 Suppose it can't price discriminate Datos Spis $800 - # $800. - $100-$700 Pe $400 X = 2 $400-2$100 La $600 So, the film would choose pa$800 72 700 Consumer Surplus & o Social Welfare = $700 In thise 2, second degree price discrimination in pereto efficien -oo o suppose everything else is unchanged, but the vacationer is willing to pay 8650 for an unrestrictad ticket & $600 for one with restrictions Unrestricted Roua trip - $650 \ro com, SMA« 2 $60 Option1: Change $800 for an unrestricted for and $.600 for one that cu came = $ 800+ $600-52001 $12.00 $ 69 707 IMP. NOTES to requies stay o bo $12000!

09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 DAY 069-296 - WEEK 10 26 27 28 29 30 31 - 12 be on Social welfawz 1200 +0=12032 option 2 : Charge $650 for an unrestricted 1 fare. IT 2X$650 - 268100) $1100 - Social Welfonen $1100 + $150 a $ 1250 Not Pareto Efficient in this 11 SUNDAY IMP. NOTES cs-S ned_with CamScanner