This paper provides an evolutionary rationale for both interracial and intraracial wage differentials by examining the implications of white employers mediating their employer?employee relationships on the basis of genetic similarity. If in organized labor markets; relationships mediated through genetic similarity are optimal in terms of Darwinian fitness, a fundamental evolutionary implication is that the Marginal Rate of Substitution (MRS) in Darwinian fitness holding extended fitness constant equals the MRS in preferences holding utility constant. Given such an evolutionary equilibrium, results are (...) derived showing that the strength of tastes for discrimination depends upon the skin hue of non?white workers. The rationale established for racial wage differentials is that where skin hue serves to indicate genetic similarity between employer and employee, wage differentials emerge that are a function of skin hue. (shrink)

In Norman, Price, and Jones , we argued that the ability to apply two sets of grammar rules flexibly from trial to trial on a “mixed-block” AGL classification task indicated strategic control over knowledge that was less than fully explicit. Jiménez suggested that our results do not in themselves prove that participants learned – and strategically controlled – complex properties of the structures of the grammars, but that they may be accounted for by learning of simple letter frequencies. We (...) first explain why our main conclusions regarding strategic control and conscious awareness are a separable issue to this criticism. We then report additional data which show that our participants’ ability to discriminate between the two grammars was not attributable to differences in simple letter frequencies. (shrink)

Recruiting patients to participate in health research is challenging, and most studies struggle. Failure to recruit can jeopardise the quality of research, and threatens efforts to improve healthcare. Despite this, recruitment materials tend to be conservatively designed and unimaginative. One reason for this is ethical concerns regarding the risk of coercion and offence posed by recruitment materials. The OXTEXT research programme gave patients a leading role in the design of new recruitment materials, in an area where stigma and discrimination (...) make ethical risks particularly acute. We discovered that our patient-designed recruitment materials were much bolder than usual, and they put the existing ethical boundaries to the test. The materials were effective and well liked – patients regarded them as neither unacceptable nor coercive. This suggests we may need to rethink the ethics of recruitment to research such that we permit more creative recruitment materials. In addition, it suggests a new role for patient input into research as designers of recruitment materials. (shrink)

From the end of 2018 in China, the Big-data Driven Price Discrimination (BDPD) of online consumption raised public debate on social media. To study the consumers’ attitude about the BDPD, this study constructed a semantic recognition frame to deconstruct the Affection-Behavior-Cognition (ABC) consumer attitude theory using machine learning models inclusive of the Labeled Latent Dirichlet Allocation (LDA), Long Short-Term Memory (LSTM), and Snow Natural Language Processing (NLP), based on social media comments text dataset. Similar to the questionnaires published (...) results, this article verified that 61% of consumers expressed negative sentiment toward BDPD in general. Differently, on a finer scale, this study further measured the negative sentiments that differ significantly among different topics. The measurement results show that the topics “Regular Customers Priced High” (69%) and “Usage Intention” (67%) occupy the top two places of negative sentiment among consumers, and the topic “Precision Marketing” (42%) is at the bottom. Moreover, semantic recognition results that 49% of consumers’ comments involve multiple topics, indicating that consumers have a pretty clear cognition of the complex status of the BDPD. Importantly, this study found some topics that had not been focused on in previous studies, such as more than 8% of consumers calling for government and legal departments to regulate BDPD behavior, which indicates that quite enough consumers are losing confidence in the self-discipline of the platform enterprises. Another interesting result is that consumers who pursue solutions to the BDPD belong to two mutually exclusive groups: government protection and self-protection. The significance of this study is that it reminds the e-commerce platforms to pay attention to the potential harm for consumers’ psychology while bringing additional profits through the BDPD. Otherwise, the negative consumer attitudes may cause damage to brand image, business reputation, and the sustainable development of the platforms themselves. It also provides the government supervision departments an advanced analysis method reference for more effective administration to protect social fairness. (shrink)

ABSTRACT:Price discrimination is the practice of charging different customers different prices for the same product. Many people consider price discrimination unfair, but economists argue that in many cases price discrimination is more likely to lead to greater welfare than is the uniform pricing alternative—sometimes for every party in the transaction. This article shows i) that there are many situations in which it is necessary to engage in differential pricing in order to make the provision (...) of a product possible; and ii) that in many such situations, the seller does not obtain an above-average rate of return. It concludes that price discrimination is not inherently unfair. The article also contends that even when conditions i) and/or ii) do not obtain, price discrimination is not necessarily unethical. In itself, the fact that some people get an even better deal than do others does not entail that the latter are wronged. (shrink)

This study explores consumer expectations and attitudes related to gender-based price discrimination. Although much research has focused on pay inequalities and gender diversity, considerably less attention has been focused on situations in which men and women are charged different prices based on gender. In two studies, expectations and attitudes toward gender-based price discrimination are examined. In Study 1, two scenarios related to prices at hair salon and dry cleaning services were manipulated to measure expectations and attitudes (...) toward gender-based price discrimination. We found that the nature of the service results in expectations of price differences between men and women. We also found men expect gender-based pricing more than women. In Study 2, qualitative research was conducted to reveal the cognitions that men and women experience when exposed to gender-based price discrimination. (shrink)

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 morallyobliged 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 toachieve the goals of price discrimination, and which may in fact be counterproductive. (shrink)

Online retailers are using advances in data collection and computing technologies to “personalize” prices, i.e., offer goods for sale to shoppers at their reservation prices, or the highest price they are willing to pay. In this paper, I offer a criticism of this practice. I begin by putting online personalized pricing in context. It is not something entirely new, but rather a kind of price discrimination, a familiar pricing practice. I then offer a fairness-based argument against it. (...) When an online retailer personalizes prices, it competes unfairly for the social surplus created by a transaction. I defend this argument against objections, and offer a simple remedy: online retailers should either disclose that they are personalizing prices, or stop doing so. (shrink)

Price discrimination is widely considered unethical/unfair by consumers, as has been borne out by decades of psychological research and mainstream press reporting. However, little academic work has been done to investigate the ethics of price discrimination. The work that has been done to date concludes that while price discrimination is not unethical, despite widespread lay perceptions, it is at best morally neutral. We argue price discrimination ismoreethical than unitary pricing, when done ‘progressively,’ (...) meaning firms charge customers as a function of their willingness-to-pay. We introduce this specific kind of price discrimination as ‘Progressive Pricing’ and demonstrate it ethically outperforms a ‘Unitary Pricing’ scheme (where everyone pays the same price, regardless of their willingness-to-pay), at least within a broadly consequentialist framework. We do this by comparing a Unitary Pricing scheme to a Progressive one, analyzing them through the lenses of four different consequentialist ‘Social Welfare Functions’ (Utilitarian, Egalitarian, Prioritarian, and Leximin), which are used by welfare economists and philosophers to rank the distributions of different social outcomes, concluding that Progressive Pricing is preferred regardless of which Social Welfare Function(s) one finds most plausible. (shrink)

ABSTRACT:Technological advances introduce the possibility that, in the future, firms will be able to use big-data analysis to discover and offer consumers their individual reservation price. This can generate some interesting benefits, such as a better state of affairs in terms of equality of both welfare and resources, as well as increased social welfare. However, these benefits are countered by considerations of relational equality. This article takes up the market-failures approach as its basis to demonstrate what is wrong with (...) using big data to personalize prices. The article offers an improvement to the market-failures approach and argues that what is wrong with using big data to personalize prices is that it unfairly undermines consumers’ ability to benefit from the market, which is the very point of having a market. (shrink)

This article presents an economic analysis of information good pricing and consumer welfare, and discusses the implications of price discrimination in the information economy. It argues that network externalities, coupled with information asymmetry, enable a dominant marketer to price unequally, extracting late adopters surplus to compensate for the loss from early adopters. In the short term, the minority early adopters benefit by paying less, but in the long term, the majority late adopters suffer by paying more. Considering (...) that late adopters are likely to be at a disadvantage in resources, this discriminatory pricing amounts to the poor subsidizing the rich. Based on this analysis, implications for consumer welfare are discussed. (shrink)

Salop’s “Circular City” model of spatial competition is generalized to higher dimensions, and to “transportation” costs which are a power of distance. Assuming free entry, mill pricing is compared to location-based price discrimination. For dimensions above one, there is some too little entry below some cutoff power, and too much entry above it. This cutoff cost-power rises with dimension, and is larger under price discrimination. Mill pricing induces more entry for powers of four or less, and (...) less entry for powers of five or more. Overall, too much entry seems a more severe problem, which tends to price discrimination. (shrink)

"Every man, however hopeless his pretensions may appear, has some project by which he hopes to rise to reputation; some art by which he imagines that the attention of the world will be attracted; some quality, good or bad, which discriminates him from the common herd of mortals, and by which others may be persuaded to love, or compelled to fear him." - Samuel Johnson.

Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior and firm image. This book provides an introduction to the basic principles for thinking clearly about pricing. Unlike other marketing books on pricing, the authors use a more analytic approach and relate ideas to the basic principles of microeconomics. Rakesh Vohra and Lakshman Krishnamurthi also cover three areas in greater depth and provide more insight than may be gleaned from existing books: 1) the use (...) of auctions, 2) price discrimination and 3) pricing in a competitive environment. (shrink)

ABSTRACT The public controversy over sex‐based differentials in insurance pricing makes heavy use of terms like ‘fairness’ and ‘discrimination’; in particular, both sides argue that their position is the one dictated by considerations of fairness. Appeal to a basic principle of distributive justice shows that these differentials are not fair. Nevertheless, there is a substantial ethical argument to be made for the industry's status quo, based on the liberty of the low‐risk insurees. The paper considers an alternative reform proposal, (...) with a qualitatively different freedom cost; seven factors are then identified as useful in evaluating the trade‐off between the freedom and justice at stake in any questionable insurance classification variable. A brief concluding section attempts to generalise this analysis to provide a broad framework for the analysis of other discrimination issues. (shrink)

Abstract:Our research investigated pricing policies of fast-food restaurants in predominantly black neighborhoods. We argue that the lack of monitoring of franchisees’ pricing policies leads to higher prices. Results indicate that franchisees are significantly more likely than company-owned outlets to charge higher prices based on the proportion of blacks in a neighborhood. These price differences do not appear to be explained away by cost or competition factors. Our findings do not establish an intent to discriminate; nevertheless, we discuss the fairness (...) of the pricing structure found. (shrink)

Firms increasingly deploy algorithmic pricing approaches to determine what to charge for their goods and services. Algorithmic pricing can discriminate prices both dynamically over time and personally depending on individual consumer information. Although legal, the ethicality of such approaches needs to be examined as often they trigger moral concerns and sometimes outrage. In this research paper, we provide an overview and discussion of the ethical challenges germane to algorithmic pricing. As a basis for our discussion, we perform a systematic interpretative (...) review of 315 related articles on dynamic and personalized pricing as well as pricing algorithms in general. We then use this review to define the term algorithmic pricing and map its key elements at the micro-, meso-, and macro levels from a business and marketing ethics perspective. Thus, we can identify morally ambivalent topics that call for deeper exploration by future research. (shrink)

Many private business relationships are increasingly characterized by claims that certain actions should not be permitted since particular right claims are involved. Such claims should be taken seriously, but are they always ethically legitimate? This paper analyzes one context, the use of age as a rating variable in the pricing of automobile insurance, where such claims are made. By identifying, evaluating and assessing the relevant basis for the differentiation, actuarial equity, it is concluded that there is an ethical basis for (...) such a practice. The analysis also provides an equivalent means for considering other such analogous claims where actuarial equity is involved. (shrink)

Increasing numbers of decisions about everyday life are made using algorithms. By algorithms we mean predictive models captured from historical data using data mining. Such models often decide prices we pay, select ads we see and news we read online, match job descriptions and candidate CVs, decide who gets a loan, who goes through an extra airport security check, or who gets released on parole. Yet growing evidence suggests that decision making by algorithms may discriminate people, even if the computing (...) process is fair and well-intentioned. This happens due to biased or non-representative learning data in combination with inadvertent modeling procedures. From the regulatory perspective there are two tendencies in relation to this issue: to ensure that data-driven decision making is not discriminatory, and to restrict overall collecting and storing of private data to a necessary minimum. This paper shows that from the computing perspective these two goals are contradictory. We demonstrate empirically and theoretically with standard regression models that in order to make sure that decision models are non-discriminatory, for instance, with respect to race, the sensitive racial information needs to be used in the model building process. Of course, after the model is ready, race should not be required as an input variable for decision making. From the regulatory perspective this has an important implication: collecting sensitive personal data is necessary in order to guarantee fairness of algorithms, and law making needs to find sensible ways to allow using such data in the modeling process. (shrink)

This paper discusses the relation between Crispin Wright’s alethic pluralism and my global expressivism. I argue that on many topics Wright’s own view counts as expressivism in my sense, but that truth itself is a striking exception. Unlike me, Wright never seems to countenance an expressivist account of truth, though the materials needed are available to him in his approaches to other topics.

The volatility of Shanghai crude oil futures prices is researched in this paper. The cusp catastrophe analysis of Shanghai crude oil futures price is based on the perspective of volatility influencing factors. Some important factors are selected based on commodity attributes and financial attributes, including certain China’s macrofactors, such as producer price index and macroeconomic prosperity index. The principal component analysis is used to process the factors. The control variables of the cusp catastrophe model are extracted. The discriminant (...) of the cusp catastrophe model and the principal component analysis are combined to determine the month of mutation. The three-dimensional renderings and plane projections of Shanghai crude oil futures price mutations in 2018 and 2019 are presented. The model is tested by comparing the time points of price sudden change nodes and emergencies. The results show that only nine factors can be used to roughly determine whether the Shanghai crude oil futures price has a sudden change. During the analysis period, the mutation months are May 2018, December 2018, February 2019, June 2019, and September 2019. It can be proved that the established model has certain feasibility and accuracy. (shrink)

How do rational minds make contact with the world? The empiricist tradition sees a gap between mind and world, and takes sensory experience, fallible as it is, to provide our only bridge across that gap. In its crudest form, for example, the traditional idea is that our minds consult an inner realm of sensory experience, which provides us with evidence about the nature of external reality. Notoriously, however, it turns out to be far from clear that there is any viable (...) conception of experience which allows it to do the job. The original problem is to show that thought is rationally constrained by external reality. If sensory experience is to provide the solution--in particular, if it is to provide the answer to sceptical challenges--it must therefore meet two criteria. First, it must itself be `receptive'--i.e., appropriately constrained by external reality. Second, it must be the kind of thing that can enter into a logical or rational relationship with belief--it must already be `conceptual,' in other words. In arguing against the idea that anything could serve both roles, Wilfred Sellars termed this conception of experience "the Myth of the Given.". (shrink)

William James said that sometimes detailed philosophical argument is irrelevant. Once a current of thought is really under way, trying to oppose it with argument is like planting a stick in a river to try to alter its course: “round your obstacle flows the water and ‘gets there just the same’”. He thought pragmatism was such a river. There is a contemporary river that sometimes calls itself pragmatism, although other titles are probably better. At any rate it is the denial (...) of differences, the celebration of the seamless web of language, the soothing away of distinctions, whether of primary versus secondary, fact versus value, description versus expression, or of any other significant kind. What is left is a smooth, undifferentiated view of language, sometimes a nuanced kind of anthropomorphism or “internal” realism, sometimes the view that no view is possible: minimalism, deflationism, quietism. Wittgenstein is often admired as a high priest of the movement. Planting a stick in this water is probably futile, but having done it before I shall do it again, and—who knows?—enough sticks may make a dam, and the waters of error may subside. (Blackburn, 1998a, 157). (shrink)

Are inferences, theoretical and practical, subject to requirements of rationality? If so, are these of the form 'if … ought …' or 'ought … if …'? If the latter, how are we to understand the 'if'? It seems that, in all cases, we get unintuitive implications if 'ought' connotes having reason. It is difficult to formulate such requirements, and obscure what they explain. There might also be a requirement forbidding self-contradiction. It is a good question whether self-contradiction constitutes, or evidences, (...) irrationality; but talk of a rational requirement causes trouble. (shrink)

Since 1991, over half the states have enacted laws that restrict or prohibit insurers’ use of genetic information in pricing, issuing, or structuring health insurance. Wisconsin was the first state to do so, in 1991, followed by Ohio in 1993, California and Colorado in 1994, and then several more states a year in each of the next five years. Similar legislation has been pending in Congress for several years. Also, a 1996 federal law known as the Health Insurance Portability and (...) Accountability Act prohibits group health insurers from applying “preexisting condition” exclusions to genetic conditions that are indicated solely by genetic tests and not by any actual symptoms. (shrink)

Does artificial intelligence (AI) pose existential risks to humanity? Some critics feel this question is getting too much attention, and want to push it aside in favour of conversations about the immediate risks of AI. These critics now include the journal Nature, where a recent editorial urges us to 'stop talking about tomorrow's AI doomsday when AI poses risks today.' We argue that this is a serious failure of judgement, on Nature's part. In science, as in everyday life, we expect (...) influential actors to consider the consequences of error. As the world's leading scientific journal, Nature is certainly an influential actor, especially so in the absence of robust global regulation of AI. Yet it has manifestly failed to consider the cost of error in this case. (shrink)

Understanding the nature of pain at least partly depends on recognizing its inherent first person epistemology and on using a first person experiential and third person experimental approach to study it. This approach may help to understand some of the neural mechanisms of pain and consciousness by integrating experiential–phenomenological methods with those of neuroscience. Examples that approximate this strategy include studies of second pain summation and its relationship to neural activities and brain imaging-psychophysical studies wherein sensory and affective qualities of (...) pain are correlated with cerebral cortical activity. The experiential paradigm of Price and Barrell offers the possibility of improved designs and methods for investigating neural mechanisms underlying pain and consciousness. (shrink)

Since 1991, over half the states have enacted laws that restrict or prohibit insurers’ use of genetic information in pricing, issuing, or structuring health insurance. Wisconsin was the first state to do so, in 1991, followed by Ohio in 1993, California and Colorado in 1994, and then several more states a year in each of the next five years. Similar legislation has been pending in Congress for several years. Also, a 1996 federal law known as the Health Insurance Portability and (...) Accountability Act prohibits group health insurers from applying “preexisting condition” exclusions to genetic conditions that are indicated solely by genetic tests and not by any actual symptoms. (shrink)

Understanding the nature of pain at least partly depends on recognizing its inherent first person epistemology and on using a first person experiential and third person experimental approach to study it. This approach may help to understand some of the neural mechanisms of pain and consciousness by integrating experiential–phenomenological methods with those of neuroscience. Examples that approximate this strategy include studies of second pain summation and its relationship to neural activities and brain imaging-psychophysical studies wherein sensory and affective qualities of (...) pain are correlated with cerebral cortical activity. The experiential paradigm of Price and Barrell offers the possibility of improved designs and methods for investigating neural mechanisms underlying pain and consciousness. (shrink)

Pricing goods properly is critical for the further growth of electronic commerce. One price discrimination technique drawn from microeconomics theory has shown promise as regards the trading of information services. This technique, however, has a serious drawback in that it assumes that a seller knows the distribution of buyers’ preferences. Unfortunately, obtaining such data is not always easy. We can incorporate agent technologies into the technique, namely, by gathering sales data and updating information about buyers, and thus improve (...) the performance. However, such an adaptive method can end in failure if each agent becomes self-interested, namely, if the problem of collusion emerges. If collusion does occur, the rationality of any price revision is lost. To solve this problem, we have developed a pricing mechanism that can withstand buyer collusion. We provide a concrete method for calculating quality and price combinations, and then analyze the mechanism theoretically and show its effectiveness. (shrink)