Favoritism, Gender Earning Gap
A study is just coming out that finds a gap in earnings based on women adjusting what they charge for services in response to whether a client is rich/poor/etc. Men apparently tend to charge a flat rate without respect to the condition of the client. A male's tendency seems to be more in line with parts of the Bible that instruct us not show favoritism, while a female's tendency may be more caring. Thoughts?
Link: http://articles.moneycentral.msn.com/SavingandDebt
ROUS  David , Monday, 8-21-06 1:15 PM
re: Favoritism, Gender Earning Gap
That's interesting. Ironically it's actually possible to increase both profits and general welfare through what is called 'price discrimination' in business. Child or Senior citizen's discounts are two examples, and the various whacky pricing schemes on airlines are another.
Essentially you have a service that a big chunk of the population can afford and wants at price X. There might be another section of the population that'd buy also at say price 90% of X. Now you could just lower your price to 90% of X and capture both segments, but what if you could charge the first group X and the 2nd group 90% of X? There are lots of means of doing just that but it seems the women in this article aren't adequately leveraging it :-> Price discrimination can be pretty annoying I suppose, but I can't say its also necessarily economically inefficient :->
David C, Monday, 8-21-06 8:24 PM
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