price gouging powerpoint

Question: Whenever the Super

Bowl is played in Miami, hotel room rates are

increased substantially. Do you consider this

“price gouging”?

Super Bowl Weekend Hotel Rates

This weekend rates VS. Super Bowl weekend rates at a 2 Star Hotel

Price Gouging VS. Supply and Demand

PRICE GOUGING

- The phenomenon of sharply rising prices of items in high demand

- Triggered when the state suffers or is threatened by a natural disaster

- Usually occurs temporarily

- No alternative retailer is available

SUPPLY & DEMAND PRINCIPLE

- Model that indicates the price determination for a certain commodity or market

- LOW supply and a HIGH demand, the price will be HIGH

- HIGH supply and a LOW demand, the priced will be LOW

Price gouging? No, just simple supply and demand…

• Really, price gouging is a reaction to supply and demand and rarely has anything to do with suppliers taking advantage of consumers

• It’s simple…If demanders are WILLING to pay a certain price, then the price is NOT above the market. If they aren't willing to pay that price, then the supplier won't charge the price.

Basically, price gouging doesn't exist…

In this situation, if a consumer is willing to pay a certain price, then he is not being gouged. If he's not willing, then he can look for an alternative or do without.

Is the Super Bowl a declared state of emergency? NO

(Probably for Raven fans)

Is reselling tickets at double the price, price-gouging?

“Ticket Scalping”

Ticket scalping is perfectly legitimate because it represents the freedom we have in

America to buy low and sell high at anytime to anyone as long as it is a legal product.

A ticket scalper is not forcing someone to buy his ticket. He's simply taking advantage of a situation and attempting to make a profit.

“Everyone is trying to make a buck one way

or another”• It’s called making a PROFIT, it’s just like reselling

anything else

• Scalpers have purchased the tickets legally, and are trying to make money off the rarity of the item.

• If there’s a demand for it, people WILL buy it.. no matter the price

After all it’s a luxury not a necessity

Question for YOU

In the United States there is NO anti-gouging legislation (besides during a state of

emergency).

TRUE or FALSE

Question:

What is the utilitarian

ethical view of such behavior?

First off, what is Utilitarianism?

A philosophical view that the value or worth of an ACTION depends on the amount of PLEASURE it generates

Rule Utilitarianism:Evaluation:

Moral rules adopted by everyone = Increase in overall happiness

Scenario: What if only 1% of small businesses emailed you 1 advertisement per year

24 million small business= 240,000 emails/yr

240,000 emails/365 days=

657 emails per day for each person

… So is using Cookies, Spam or Pop

ups ethical under Rule Utilitarianism?

NO…because the usefulness of these would be very minimal

Question for YOU

• A train is running out of control down a track. In its path are 5 people who have been tied to the track.  Fortunately, you could flip a switch, which will lead the trolley down a different track.  Unfortunately, there is a single person tied to that track. Should you flip the switch or do nothing?