Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-27T02:55:16.637Z Has data issue: false hasContentIssue false

Does the Consumer Have an Obligation to Cooperate with Price Discrimination?

Published online by Cambridge University Press:  23 January 2015

Abstract:

Price discrimination is widespread in the American economy and sometimes can be defended as achieving socially preferable economic outcomes. However, the separation of markets required for price discrimination is often difficult to sustain. Sometimes those whom the seller wishes to charge higher prices are identified by imprecise markers. (Thus, as one example, airlines have traditionally attempted to identify business travelers willing to pay higher fares as those travelers unwilling to stay at their destination over a Saturday night.) Imprecise targeting complicates efforts to prevent strategies of circumvention and sellers sometimes resort to claiming that buyers are morally bound to observe rules which sellers cannot otherwise enforce. This paper examines whether buyers can be morally bound by sellers to put themselves into discriminated-against classes.

This paper takes the position that if, as often seems to be the case, there is a social consensus that consumers would not be morally obliged to sort themselves into categories precisely designed to achieve the goals of price discrimination, then there is, a fortiori, a social consensus that consumers are not morally obliged to sort themselves into categories which are only crudely designed to achieve the goals of price discrimination, and which may in fact be counterproductive.

Type
Articles
Copyright
Copyright © Society for Business Ethics 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Carey, Susan. 1997. “Airlines Crack Down on Agents Over Fare Ploys,” Wall Street Journal (September 12): 5.Google Scholar
Carson, Thomas. 1993. “Second Thoughts About Bluffing,” Business Ethics Quarterly 3, (4) (October): 31741.Google Scholar
Conditions of Carriage, American Airlines Website. http://www.aa.com/content/customerService/customerCommitment/conditionsOfCarriage.jhtml, accessed July 2, 2002.Google Scholar
Cramton, Peter C., and Gregory Dees, J.. 1993. “Promoting Honesty in Negotiation,” Business Ethics Quarterly 3(4) (October, 1993): 35994.Google Scholar
Dickerson, Thomas A. 2002. Travel Law. New York: Law Journal Press.Google Scholar
Elliott, Christopher. 2002. “Airlines Take Aim at Wrong Target.” USA Today (July 15): A-13.Google Scholar
Trottman, Melanie. 2002. “Airline Ticketing Rules Take on Heft.” Wall Street Journal (December 11): D4.Google Scholar