Transactions in a marketplace

by | Mar 6, 2023 | Marketing, sociology

 

 

 

 

 

 

The idea that transactions in a marketplace work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price, they are happy with the deal. There is no coercion. If the person really does not like the deal, they simply walk away.

This week’s discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario.

Also see the help provided in the discussion preparation.

Instructions
For this discussion, use the following hypothetical scenario as the basis for your response:

Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal.
Address the following in your discussion post:

Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship.
What degree is this type of price discrimination?
How will the plan increase revenue?
Why will both groups of customers be satisfied with the deal?
Why is this a legal form of pricing?
Use evidence from your textbook or other reputable sources, including any help in the discussion preparation, to support your case to your business partner.

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Solution

Making a case for both groups of customers being satisfied with the deal can be done by explaining that different pricing strategies can be beneficial to companies as well as their customers. By offering discounted prices to larger customers, these businesses are able to take advantage of economies of scale and pass on some of their savings in the form of lower prices. This is especially true when dealing with web-based services because they require less overhead costs than physical products or services, allowing the company more flexibility in setting prices. Furthermore, smaller customers may still find value in paying a higher rate for the same service since it is likely that they have fewer means and resources available than large clients.

 

Sample Solution

Making a case for both groups of customers being satisfied with the deal can be done by explaining that different pricing strategies can be beneficial to companies as well as their customers. By offering discounted prices to larger customers, these businesses are able to take advantage of economies of scale and pass on some of their savings in the form of lower prices. This is especially true when dealing with web-based services because they require less overhead costs than physical products or services, allowing the company more flexibility in setting prices. Furthermore, smaller customers may still find value in paying a higher rate for the same service since it is likely that they have fewer means and resources available than large clients.

 

The degree of price discrimination this plan would entail could be considered third-degree price discrimination since it would involve charging different rates based on buyer characteristics (in this case size). This type of pricing strategy allows businesses to differentiate between buyers who are willing/able to pay more for their goods and those who might need or want discounts due to economic constraints which results in increased revenue overall.

Both groups will be satisfied with the deal because it offers advantages that each one needs: large clients benefit from reduced costs while small ones get access to goods/services at an affordable price point. This type of pricing strategy also benefits business owners by increasing profits through minimizing wastage and maximizing sales volumes, providing them with greater financial stability and ultimately helping them invest back into their operations or other projects.

Finally, this is a legal form of pricing so long as businesses don’t engage in anti-competitive practices such as collusion with competitors or engaging in predatory behaviour against certain customer groups which could lead to fines being imposed by regulators. As long as all parties are aware of what types of discounts they’re receiving and why, then there should not be any legal issues related to implementing such a pricing scheme.

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