8Ethics on Pricing

1. Ethics on Pricing

2. Copyright © 2015 Pearson Education,
Inc.
What is pricing?
How can we say that a price is
just?
What are common practices
that undermine just pricing?

3. What is a just price for a
product?

4. Copyright © 2015 Pearson Education,
Inc.
Drawing from the thoughts
of Aristotle, Thomas Aquinas
and the Ancient Roman legal
system, Robert G. Kennedy
came up with the conditions to
determine whether a product's
price is fair and just.

5. Copyright © 2015 Pearson Education,
Inc.
First, there must be sufficient
information about the
product both on the side of
the seller and the buyer.

6. Copyright © 2015 Pearson Education,
Inc.
Second, Kennedy says that the
price is just if both the buyer
and seller are absolutely free
to negotiate about the price.

7. Copyright © 2015 Pearson Education,
Inc.
Third, the price is just if there
are no extraordinary
circumstances that put
pressure on the buyer or the
seller.

8. In a free market system, a just
price aims not for
mathematical computations
that produce exactitude but for
the avaoidance of economic
inequality and exploitation.