1)Identify and Explain in detail in the various unfair

practices/ unethical issues in Pricing.

A) Price fixing:is when two entities, usually companies, agree to sell a
product at a set price. They do this to maintain profit margins. It's easiest
for monopolies to fix prices. They operate without competitors that
could offer products at lower prices.
Types
There are four types of price fixing.
1)Agreement to raise prices: All competitors agree to raise prices of a
product by a certain amount.It found such agreements raise prices by
20% mostly.
2)Freeze or lower prices: Governments fix prices by setting price
freezes.The government fixed prices to stop inflation and restore
confidence in the economy. It is a very clumsy tool and is only used
when monetary policy has proven ineffective.
3)Horizontal price-fixing occurs when two or more competitors conspire
to set prices, price levels, or price-related terms for their goods or
services.It was most famously done by the Organization of the
Petroleum Exporting Countries.
4)vertical price-fixing is an illegal arrangement in which parties at
different levels of a system of production and distribution act to fix the
market price of goods
B)Price leadership:occurs when a pre-eminent firm (the price leader)
sets the price of goods or services in its market. This control can leave
the leading firm's rivals with little choice but to follow its lead and
match the prices if they are to hold on to their market share. Price
leadership is common in oligopolies, such as the airline industry, in
which a dominant company sets the prices and other airlines feel
compelled to adjust their prices to match.
C)Administered price:price determined by an individual producer or
seller and not purely by market forces. Administered prices are common
in industries with few competitors and those in which costs tend to be
rigid and more or less uniform. They are considered undesirable when
they cause prices to be higher than a competitive standard, when they are
accompanied by excessive non-price competition (efforts to increase
sales without enhancing the value of the product), or when they add to
inflationary tendencies—either by failure to lower prices in response to
cost reductions or by increasing prices to maintain a given margin of
profit in the face of rising costs.
D)Price maintenance: also called resale price maintenance, measures
taken by manufacturers or distributors to control the resale prices of their
products charged by resellers. The practice is more effective in retail
sales than at other levels of marketing. Only a few types of goods have
come under such controls, the leading examples being drugs and
pharmaceuticals, books, photographic supplies, liquors, miscellaneous
household appliances, and various specialty goods.
2)Explain the difficulties with the existing theories.
A) Inapplicable to many segment: in a simpler economy prices were
set by collective judgment of fairly large number of buyers and sellers.is
in applicable to large segment of our economy,since the market is not
perfect and large buyers and sellers are often in a position to set the price
unilaterally with in broad limits.
B)They make no allowance for the cost of price instability:price
competition gives consumers lower price and the economy fair prices, it
also tends to create instability, which make it difficult to plan,research
and innovate so companies should not engage in price competion and
seek to administered price in the interest and planned growth.
3)Explain the relationship between Price and advertising.
False/misleading advertising certainly leads to unfair price since
customers tend to pay more than they should have.
Honest advertising can create illusion that lead customer to pay more
than they should have.but its not the advertiser problem alone.
Careless buyers who identify the branded and the advertised item with
the price as an index of quality.
4)Explain the relationship between Price and Passion.
an unjust price can result not only fraud and power, but also from
passion and irrational desire, which can destroy orlimit freedom.
dealing with persons emotions and charge inflated price.