Inequitable bargaining
- Price discrimination
- Discriminatory sales methods
- Active prejudice in business
Nature
Inequitable bargaining refers to a situation where there is an imbalance of power and resources between negotiating parties, leading to an unfair and disadvantageous outcome for one party. It occurs when one party has significantly more leverage, knowledge, or control over key resources compared to the other party. This power asymmetry can result in the disadvantaged party being coerced or manipulated into accepting unfavorable terms or agreements. Inequitable bargaining can be seen in various contexts, such as labor negotiations, business contracts, or international trade agreements. It undermines the principles of fairness, equality, and transparency in negotiations, and can perpetuate social and economic disparities.
Incidence
There are no federal laws in the USA which outlaw racial discrimination in the sale of goods and services. Car dealers put customers through the unpleasantness of haggling because some of the make 50% of their profits from 10% of their sales. Their sales technique is essentially a search for suckers. Forcing customers to bargain lets dealers target the least informed, least aggressive, and most rushed. An academic study in the USA involving 90 different car dealerships showed that for the same model car with exactly the same option, a white woman pays on average $150 more than a white man, a black man pays $300 more, and a black woman almost $900 more, or triple the mark-up paid by white men.
Claim
The problem of inequitable bargaining has reached alarming proportions, threatening the very fabric of our society. As powerful corporations continue to exploit their position of dominance, the voice of the individual is drowned out, leaving them vulnerable and powerless. This egregious disparity in bargaining power not only perpetuates economic inequality but also hampers social progress, as the marginalized are denied fair wages, safe working conditions, and basic human rights. The urgent need for equitable bargaining cannot be overstated, as failure to address this grave issue will ultimately erode the principles of justice and equality that underpin our democratic society.
Counter-claim
While some may argue that inequitable bargaining is a significant problem, it is important to recognize that negotiation is inherently based on the principle of self-interest and the pursuit of personal gains. It is unrealistic to expect completely equal power dynamics in every negotiation, as parties naturally employ different strategies and leverage to achieve favorable outcomes. Moreover, the existence of alternative options and the freedom to walk away from a negotiation provide individuals with the ability to protect their interests. Thus, the concept of inequitable bargaining should be viewed as a natural aspect of negotiation rather than a serious issue that requires intervention.