Price Discrimination -Economics Essay Example | Topics and Well Written Essays - 2000 words

Price Discrimination -Economics - Essay Example The works of economics in various fields have been criticized for not being implementable in the real world and this has been one of the most serious failures of economists. However, there are still a number of theories which can be implemented in the real markets as they are in the books and work well in the human environment due to the fact that they have been developed over years after observing human nature and business functioning methods. This paper will be discussing the concept of price discrimination and how it can be used to benefit firms instead of the general notion that discounts and special fares for different target groups will lead to lower profit margins and losses. The paper is outlined in a continuous flow that will explain the basic three degrees of price discrimination with illustrations. After the theories have been discussed in detail, the practical examples will give the reader an idea of how the theory works in the actual environment which will be followed by a prompt conclusion. Though the term says it all, it is necessary to consider the mechanisms of demand and supply and the rubrics of price determination in a market where buyers and sellers have the natural tendency to bargain and ask for discounts if their purchases are above a standard quantity while sellers would love to settle for a lower price if buyers are willing to purchase more just because of the selling price being reduced. The definition of price discrimination is to "charge different buyers different prices for the same good, even though there is no difference in costs between customers" (Price Discrimination Notes, 2009). There are three degrees of price discrimination which form the complete function of this theory and while all can be practiced at the same time, it all is a matter of information flow in the system as to how long the practice can be sustained without forces acting towards price restoration (Case & Fair, 2004). This section will identify the three forms of price discrimination in theory clearly understating how it can still be profitable for firms to operate even though may be discriminating against prices. The above graph shows a typical demand-supply curve for a real market. With no price discrimination, the consumer surplus is the value the consumers received extra i.e. they did not pay for this value. However, the producer surplus represents the value of goods which the producer pocketed money for but actually never produced. The above demand and supply schedules are only possible because of the different willing-to-pay prices of different customers (Mankiw, 2002). This leads to some customers having to buy a product at a price which above which they valued the product while others have to pay an amount greater than the value they perceived for that product. Perfect Price Discrimination - First Degree of Price Discrimination The normal case of demand and supply match is twisted slightly by sellers in the first degree of price discrimination. Here the sellers discriminate "perfectly" amongst their consumers. This means that a consumer willing to pay $10 instead of the $5 market price will have no clue as to the fair market value of the product and will end up

Collision of the right to privacy and the right to freedom of Essay

Collision of the right to privacy and the right to freedom of expression - Essay Example The verdict of the cases, whether they were in compliance with the Human Rights Act, has been made. A discussion of the European Convention and the acts adopted by the Convention has also been made. An evaluation of the prior laws that helped to mould the Human Rights in Europe is also analyzed in the paper. Human Rights are the set of guidelines laid down by legal bodies and organizations that safeguards the rights and freedoms of human beings. The elementary rights and freedoms, which every human being irrespective of cast creed social stature; are entitled to can be collectively termed as Human Rights. Human Rights include civil rights, freedom of expression, political rights, and also equality before a court of law for uniform generation of justice. Civil, economic, cultural, social and political are the various classification of Human Rights. However, Human Rights, although are made for social benefits are not social rights. Social rights are more like objectives which need to be attained, while Human Rights are objectives or norms which are to be followed. Human Rights are laws which need to be obeyed to maintain the social, cultural and legal balance. The different classification of Human Rights is a contribution to it, as it covers all necessary aspects, which needs to be covered for the well being of the civilians. . The history of human rights can be traced back to thousands of years covering cultural, political, legal and religious aspects. Emperor Ashoka of India issued the 'Edicts of Ashoka' back in 250-270 BC, which is a collection of thirty three inscriptions on pillars, made by the emperor. The edicts, being the first form of Buddhist preaching, were moral in nature and were based on doing basic good deeds. The Magna Carta, formerly known as the English Legal Charter was written in Latin and was issued in 1215. It is one of the important historical examples that developed the English law, to protect the rights of the people against monarchial rule. It influenced the development of constitutional laws and common laws. The British Bill of Rights, 1689 was an act that protected the interest of the people against government actions in the United Kingdom. The Geneva Conventions, and the Lieber Code, 1864 can be described as the initiations that laid the basic foundations of International Humani tarian laws. International Humanitarian laws The Geneva Convention adopted by the International Committee of Red Cross was one of the first attempts to safeguard the interest of individuals fighting in wars. It was revised after the World War II and adopted by the Red Cross Community in 1949. Presently the Geneva Conventions are referred to as the Humanitarian law, under the governance of International Committee of Red Cross. The Universal Declaration of Human Rights (UDHR) was adopted by the United Nations General Assembly in 1948. This is a non binding declaration that was adopted after the World War II. The UDHR may be referred to in any national and international cases, and is considered to be a central component of international humanitarian law. (United Nations, 2008) Human Rights Treaties The International Covenant on Economic, Social and Cultural Rights (ICESCR) and The International Covenant on Civil and Political Rights (ICCPR) were the two most important treaties that were