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Indian philosophy
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Indian philosophy (Sanskrit: दर्शन or darśana) comprises the ancient philosophical traditions of the Indian subcontinent. The schools of Indian philosophical thought are classified as either orthodox or heterodox – āstika or nāstika – depending on one of three alternate criteria: whether it believes the Vedas are a valid source of knowledge; whether the school believes in the premises of Brahman and Atman; and whether the school believes in afterlife and Devas.[1][2][3]
There are six major schools of orthodox Hindu philosophy—Nyaya, Vaisheshika, Samkhya, Yoga, Mīmāṃsā and Vedanta, and five major heterodox schools—Jain, Buddhist, Ajivika, Ajñana, and Cārvāka. However, there are other methods of classification; Vidyaranya for instance identifies sixteen schools of Indian philosophy by including those that belong to the Śaiva and Raseśvara traditions.[4][5]
The main schools of Indian philosophy were formalised chiefly between 1000 BCE to the early centuries of the Common Era. According to philosopher Sarvepalli Radhakrishnan, the earliest of these, which date back to the composition of the Upanishads in the later Vedic period (1000–500 BCE), constitute "the earliest philosophical compositions of the world."[6] Competition and integration between the various schools was intense during their formative years, especially between 800 BCE and 200 CE. Some schools like Jainism, Buddhism, Yoga, Śaiva and Advaita Vedanta survived, but others, like Ajñana, Charvaka and Ājīvika did not.
Ancient and medieval era texts of Indian philosophies include extensive discussions on Ontology (metaphysics, Brahman-Atman, Sunyata-Anatta), reliable means of knowledge (epistemology, Pramanas), value system (axiology) and other topics.[7][8][9]
Contents
[hide]
1 Common themes
2 Orthodox schools
3 Heterodox (Śramaṇic schools)
3.1 Ajñana philosophy
3.2 Jain philosophy
3.3 Buddhist philosophy
3.4 Ājīvika philosophy
3.5 Cārvāka philosophy
4 Comparison of Indian philosophies
5 Political philosophy
6 Influence
7 See also
8 Notes
9 References
10 Sources
11 Further reading
12 External links
Common themes[edit]
Indian philosophies share many concepts such as dharma, karma, samsara, reincarnation, dukkha, renunciation, meditation, with almost all of them focussing on the ultimate goal of liberation of the individual through diverse range of spiritual practices (moksha, nirvana).[10] They differ in their assumptions about the nature of existence as well as the specifics of the path to the ultimate liberation, resulting in numerous schools that disagreed with each other. Their ancient doctrines span the diverse range of philosophies found in other ancient cultures.[11]
Orthodox schools[edit]
Main articles: Hindu philosophy, Hinduism, Vedas, and Upanishads
Many Hindu intellectual traditions were classified during the medieval period of Brahmanic-Sanskritic scholasticism into a standard list of six orthodox (Astika) schools (darshanas), the "Six Philosophies" (ṣaḍ-darśana), all of which accept the testimony of the Vedas.[12][13][14]
Samkhya, the rationalism school with dualism and atheistic themes[15][16]
Yoga, a school similar to Samkhya but accepts personally defined theistic themes[17]
Nyaya, the realism school emphasizing analytics and logic[18][19]
Vaisheshika, the naturalism school with atomistic themes and related to the Nyaya school[20][21]
Purva Mimamsa (or simply Mimamsa), the ritualism school with Vedic exegesis and philology emphasis,[22][23] and
Vedanta (also called Uttara Mimamsa), the Upanishadic tradition, with many sub-schools ranging from dualism to nondualism.[24][25]
These are often coupled into three groups for both historical and conceptual reasons: Nyaya-Vaishesika, Samkhya-Yoga, and Mimamsa-Vedanta. The Vedanta school is further divided into six sub-schools: Advaita (monism/nondualism), also includes the concept of Ajativada, Visishtadvaita (monism of the qualified whole), Dvaita (dualism), Dvaitadvaita (dualism-nondualism), Suddhadvaita, and Achintya Bheda Abheda schools.
Besides these schools Mādhava Vidyāraṇya also includes the following of the aforementioned theistic philosophies based on the Agamas and Tantras:[4]
Pasupata, school of Shaivism by Nakulisa
Saiva, the theistic Sankhya school
Pratyabhijña, the recognitive school
Raseśvara, the mercurial school
Pāṇini Darśana, the grammarian school (which clarifies the theory of Sphoṭa)
The systems mentioned here are not the only orthodox systems, they are the chief ones, and there are other orthodox schools. These systems, accept the authority of Vedas and are regarded as orthodox (astika) schools of Hindu philosophy; besides these, schools that do not accept the authority of the Vedas are heterodox (nastika) systems such as Buddhism, Jainism, Ajivika and Cārvāka.[26][27][28] This orthodox-heterodox terminology is a construct of Western languages, and lacks scholarly roots in Sanskrit. According to Andrew Nicholson, there have been various heresiological translations of Āstika and Nāstika in 20th century literature on Indian philosophies, but quite many are unsophisticated and flawed.[3]
Cārvāka is a materialistic and atheistic school of thought and, is noteworthy as evidence of a materialistic movement within Hinduism.[29]
Heterodox (Śramaṇic schools)[edit]
Main article: Śramaṇa
Several Śramaṇic movements have existed before the 6th century BCE, and these influenced both the āstika and nāstika traditions of Indian philosophy.[30] The Śramaṇa movement gave rise to diverse range of heterodox beliefs, ranging from accepting or denying the concept of soul, atomism, antinomian ethics, materialism, atheism, agnosticism, fatalism to free will, idealization of extreme asceticism to that of family life, strict ahimsa (non-violence) and vegetarianism to permissibility of violence and meat-eating.[31] Notable philosophies that arose from Śramaṇic movement were Jainism, early Buddhism, Cārvāka, Ajñana and Ājīvika.[32]
Ajñana philosophy[edit]
Main article: Ajñana
Ajñana was one of the nāstika or "heterodox" schools of ancient Indian philosophy, and the ancient school of radical Indian skepticism. It was a Śramaṇa movement and a major rival of early Buddhism and Jainism. They have been recorded in Buddhist and Jain texts. They held that it was impossible to obtain knowledge of metaphysical nature or ascertain the truth value of philosophical propositions; and even if knowledge was possible, it was useless and disadvantageous for final salvation. They were sophists who specialised in refutation without propagating any positive doctrine of their own.
Jain philosophy[edit]
Main articles: Jain philosophy and Jainism
Jainism came into formal being after Mahavira synthesised philosophies and promulgations of the ancient Śramaṇic traditions, during the period around 550 BC, in the region that is present day Bihar in northern India.[citation needed]
Jainism, like Buddhism, is a Śramaṇic religion and rejected the authority of the Vedas. However, like all Indian religions, it shares the core concepts such as karma, ethical living, rebirth, samsara and moksha. Jainism places strong emphasis on asceticism and ahimsa (non-violence) as a means of spiritual liberation, ideas that influenced other Indian traditions.[33]
Buddhist philosophy[edit]
Main articles: Buddhist philosophy and Early Buddhism
Buddhist philosophy is a system of thought which started with the teachings of Siddhartha Gautama, the Buddha, or "awakened one". Buddhism is founded on elements of the Śramaṇa movement, which flowered in the first half of the 1st millennium BCE, but its foundations contain novel ideas not found or accepted by other Sramana movements. Buddhism and Hinduism mutually influenced each other and shared many concepts, states Paul Williams, however it is now difficult to identify and describe these influences.[34] The influence of 3rd-century CE[35] Buddhist Tathagatagarbha Sutras on the Advaita Vedanta Hindu scholar Gaudapada – a major school of thought within Hinduism, is clear.[36] Buddhism rejected the Vedic concepts of Brahman (ultimate reality) and Atman (soul, self) at the foundation of Hindu philosophies.[37][38][39]
Buddhism shares many philosophical views with other Indian systems, such as belief in karma – a cause-and-effect relationship, samsara – ideas about cyclic afterlife and rebirth, dharma – ideas about ethics, duties and values, impermanence of all material things and of body, and possibility of spiritual liberation (nirvana or moksha).[40][41] A major departure from Hindu and Jain philosophy is the Buddhist rejection of an eternal soul (atman) in favour of anatta (non-Self).[42]
An aloof meditative life has been an ancient Indian tradition, and a source of the philosophical doctrines its schools developed. Above is the 3rd century BCE mendicant caves of the Ājīvikas (Barabar, near Gaya, Bihar).[43]
Ājīvika philosophy[edit]
Main article: Ājīvika
The philosophy of Ājīvika was founded by Makkhali Gosala, it was a Śramaṇa movement and a major rival of early Buddhism and Jainism.[44] Ājīvikas were organised renunciates who formed discrete monastic communities prone to an ascetic and simple lifestyle.[45]
Original scriptures of the Ājīvika school of philosophy may once have existed, but these are currently unavailable and probably lost. Their theories are extracted from mentions of Ajivikas in the secondary sources of ancient Indian literature, particularly those of Jainism and Buddhism which polemically criticized the Ajivikas.[46] The Ājīvika school is known for its Niyati doctrine of absolute determinism (fate), the premise that there is no free will, that everything that has happened, is happening and will happen is entirely preordained and a function of cosmic principles.[46][47] Ājīvika considered the karma doctrine as a fallacy.[48] Ājīvikas were atheists[49] and rejected the authority of the Vedas, but they believed that in every living being is an ātman – a central premise of Hinduism and Jainism.[50][51]
Cārvāka philosophy[edit]
Main article: Cārvāka
Cārvāka or Lokāyata was a philosophy of scepticism and materialism, founded in the Mauryan period. They were extremely critical of other schools of philosophy of the time. Cārvāka deemed Vedas to be tainted by the three faults of untruth, self-contradiction, and tautology.[52] Likewise they faulted Buddhists and Jains, mocking the concept of liberation, reincarnation and accumulation of merit or demerit through karma.[53] They believed that, the viewpoint of relinquishing pleasure to avoid pain was the "reasoning of fools".[52]
Comparison of Indian philosophies[edit]
The Indian traditions subscribed to diverse philosophies, significantly disagreeing with each other as well as orthodox Hinduism and its six schools of Hindu philosophy. The differences ranged from a belief that every individual has a soul (self, atman) to asserting that there is no soul,[54] from axiological merit in a frugal ascetic life to that of a hedonistic life, from a belief in rebirth to asserting that there is no rebirth.[55]
Comparison of ancient Indian philosophies
Ājīvika
Early Buddhism
Cārvāka
Jainism
Orthodox schools of Hinduism
(Non-Śramaṇic)
Karma Denies[48][56] Affirms[55] Denies[55] Affirms[55] Affirms
Samsara, Rebirth Affirms Affirms[57] Denies[58] Affirms[55] Some school affirm, some not[59]
Ascetic life Affirms Affirms Affirms[55] Affirms Affirms as Sannyasa[60]
Rituals, Bhakti Affirms Affirms, optional[61]
(Pali: Bhatti) Denies Affirms, optional[62] Theistic school: Affirms, optional[63]
Others: Deny[64][65]
Ahimsa and Vegetarianism Affirms Affirms,
Unclear on meat as food[66] Strongest proponent
of non-violence;
Vegetarianism to avoid
violence against animals[67] Affirms as highest virtue,
but Just War affirmed
Vegetarianism encouraged, but
choice left to the Hindu[68][69]
Free will Denies[47] Affirms[70] Affirms Affirms Affirms[71]
Maya Affirms[72] Affirms
(prapañca)[73] Denies Affirms Affirms[74][75]
Atman (Soul, Self) Affirms Denies[54] Denies[76] Affirms[77]:119 Affirms[78]
Creator God Denies Denies Denies Denies Theistic schools: Affirm[79]
Others: Deny[80][81]
Epistemology
(Pramana) Pratyakṣa,
Anumāṇa,
Śabda Pratyakṣa,
Anumāṇa[82][83] Pratyakṣa[84] Pratyakṣa,
Anumāṇa,
Śabda[82] Various, Vaisheshika (two) to Vedanta (six):[82][85]
Pratyakṣa (perception),
Anumāṇa (inference),
Upamāṇa (comparison and analogy),
Arthāpatti (postulation, derivation),
Anupalabdi (non-perception, negative/cognitive proof),
Śabda (Reliable testimony)
Epistemic authority Denies: Vedas Affirms: Buddha text[86]
Denies: Vedas Denies: Vedas Affirms: Jain Agamas
Denies: Vedas Affirm: Vedas and Upanishads,[note 1]
Affirm: other texts[86][88]
Salvation
(Soteriology) Samsdrasuddhi[89] Nirvana
(realize Śūnyatā)[90] Siddha[91] Moksha, Nirvana, Kaivalya
Advaita, Yoga, others: Jivanmukti[92]
Dvaita, theistic: Videhamukti
Metaphysics
(Ultimate Reality) Śūnyatā[93][94] Anekāntavāda[95] Brahman[96][97]
Political philosophy[edit]
The Arthashastra, attributed to the Mauryan minister Chanakya, is one of the early Indian texts devoted to political philosophy. It is dated to 4th century BCE and discusses ideas of statecraft and economic policy.
The political philosophy most closely associated with India is the one of ahimsa (non-violence) and Satyagraha, popularised by Mahatma Gandhi during the Indian struggle for independence. It was influenced by the Indian Dharmic philosophy, particularly the Buddha, Bhagvata Gita, as well as secular writings of authors such as Leo Tolstoy, Henry David Thoreau and John Ruskin.[98] In turn it influenced the later movements for independence and civil rights, especially those led by Martin Luther King, Jr. and to a lesser extent Nelson Mandela.[99]
Influence[edit]
In appreciation of complexity of the Indian philosophy, T S Eliot wrote that the great philosophers of India "make most of the great European philosophers look like schoolboys".[100][101] Arthur Schopenhauer used Indian philosophy to improve upon Kantian thought. In the preface to his book The World As Will And Representation, Schopenhauer writes that one who "has also received and assimilated the sacred primitive Indian wisdom, then he is the best of all prepared to hear what I have to say to him"[102] The 19th century American philosophical movement Transcendentalism was also influenced by Indian thought[103][104]
See also[edit]
India portal
Philosophy portal
Jainism portal
Buddhism portal
Advaita
Affectionism
Indian logic
Indian art
Indian religions
M Hiriyanna
Svayam bhagavan
Trikaranasuddhi
Notes[edit]
Jump up ^ Elisa Freschi (2012): The Vedas are not deontic authorities and may be disobeyed, but still recognized as an epistemic authority by a Hindu;[87] (Note: This differentiation between epistemic and deontic authority is true for all Indian religions)
References[edit]
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^ Jump up to: a b Cowell and Gough, p. xii.
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[b] Gombrich (2006), page 47, Quote: "(...) Buddha's teaching that beings have no soul, no abiding essence. This 'no-soul doctrine' (anatta-vada) he expounded in his second sermon."
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[b] Steven Collins (1994), Religion and Practical Reason (Editors: Frank Reynolds, David Tracy), State Univ of New York Press, ISBN 978-0791422175, page 64; "Central to Buddhist soteriology is the doctrine of not-self (Pali: anattā, Sanskrit: anātman, the opposed doctrine of ātman is central to Brahmanical thought). Put very briefly, this is the [Buddhist] doctrine that human beings have no soul, no self, no unchanging essence.";
[c] John C. Plott et al (2000), Global History of Philosophy: The Axial Age, Volume 1, Motilal Banarsidass, ISBN 978-8120801585, page 63, Quote: "The Buddhist schools reject any Ātman concept. As we have already observed, this is the basic and ineradicable distinction between Hinduism and Buddhism";
[d] Katie Javanaud (2013), Is The Buddhist 'No-Self' Doctrine Compatible With Pursuing Nirvana?, Philosophy Now;
[e] David Loy (1982), Enlightenment in Buddhism and Advaita Vedanta: Are Nirvana and Moksha the Same?, International Philosophical Quarterly, Volume 23, Issue 1, pages 65-74
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Jump up ^ Jeffrey D Long (2009), Jainism: An Introduction, Macmillan, ISBN 978-1845116255, page 199
Jump up ^ Basham 1951, pp. 145-146.
^ Jump up to: a b Basham 1951, Chapter 1.
^ Jump up to: a b James Lochtefeld, "Ajivika", The Illustrated Encyclopedia of Hinduism, Vol. 1: A–M, Rosen Publishing. ISBN 978-0823931798, page 22
^ Jump up to: a b Ajivikas World Religions Project, University of Cumbria, United Kingdom
Jump up ^ Johannes Quack (2014), The Oxford Handbook of Atheism (Editors: Stephen Bullivant, Michael Ruse), Oxford University Press, ISBN 978-0199644650, page 654
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Jump up ^ Basham 1951, pp. 240-261, 270-273.
^ Jump up to: a b Cowell and Gough, p. 4
Jump up ^ Bhattacharya, Ramkrishna. Materialism in India: A Synoptic View. Retrieved 27 July 2012.
^ Jump up to: a b [a] Steven Collins (1994), Religion and Practical Reason (Editors: Frank Reynolds, David Tracy), State Univ of New York Press, ISBN 978-0791422175, page 64; "Central to Buddhist soteriology is the doctrine of not-self (Pali: anattā, Sanskrit: anātman, the opposed doctrine of ātman is central to Brahmanical thought). Put very briefly, this is the [Buddhist] doctrine that human beings have no soul, no self, no unchanging essence.";
[b]KN Jayatilleke (2010), Early Buddhist Theory of Knowledge, ISBN 978-8120806191, pages 246-249, from note 385 onwards;
[c]John C. Plott et al (2000), Global History of Philosophy: The Axial Age, Volume 1, Motilal Banarsidass, ISBN 978-8120801585, page 63, Quote: "The Buddhist schools reject any Ātman concept. As we have already observed, this is the basic and ineradicable distinction between Hinduism and Buddhism";
[d]Katie Javanaud (2013), Is The Buddhist ‘No-Self’ Doctrine Compatible With Pursuing Nirvana?, Philosophy Now;
[e]Anatta Encyclopædia Britannica, Quote:"In Buddhism, the doctrine that there is in humans no permanent, underlying substance that can be called the soul. (...) The concept of anatta, or anatman, is a departure from the Hindu belief in atman (self)."
^ Jump up to: a b c d e f Randall Collins (2000). The sociology of philosophies: a global theory of intellectual change. Harvard University Press. pp. 199–200. ISBN 9780674001879.
Jump up ^ Gananath Obeyesekere (2005), Karma and Rebirth: A Cross Cultural Study, Motilal Banarsidass, ISBN 978-8120826090, page 106
Jump up ^ Damien Keown (2013), Buddhism: A Very Short Introduction, 2nd Edition, Oxford University Press, ISBN 978-0199663835, pages 32-46
Jump up ^ Haribhadrasūri (Translator: M Jain, 1989), Saddarsanasamuccaya, Asiatic Society, OCLC 255495691
Jump up ^ Halbfass, Wilhelm (2000), Karma und Wiedergeburt im indischen Denken, Diederichs, München, ISBN 978-3896313850
Jump up ^ Patrick Olivelle (2005), The Blackwell Companion to Hinduism (Editor: Flood, Gavin), Wiley-Blackwell, ISBN 978-1405132510, pages 277-278
Jump up ^ Karel Werner (1995), Love Divine: Studies in Bhakti and Devotional Mysticism, Routledge, ISBN 978-0700702350, pages 45-46
Jump up ^ John Cort, Jains in the World : Religious Values and Ideology in India, Oxford University Press, ISBN, pages 64-68, 86-90, 100-112
Jump up ^ Christian Novetzke (2007), Bhakti and Its Public, International Journal of Hindu Studies, Vol. 11, No. 3, page 255-272
Jump up ^ [a] Knut Jacobsen (2008), Theory and Practice of Yoga : 'Essays in Honour of Gerald James Larson, Motilal Banarsidass, ISBN 978-8120832329, pages 15-16, 76-78;
[b] Lloyd Pflueger, Person Purity and Power in Yogasutra, in Theory and Practice of Yoga (Editor: Knut Jacobsen), Motilal Banarsidass, ISBN 978-8120832329, pages 38-39
Jump up ^ [a] Karl Potter (2008), Encyclopedia of Indian Philosophies Vol. III, Motilal Banarsidass, ISBN 978-8120803107, pages 16-18, 220;
[b] Basant Pradhan (2014), Yoga and Mindfulness Based Cognitive Therapy, Springer Academic, ISBN 978-3319091044, page 13 see A.4
Jump up ^ U Tahtinen (1976), Ahimsa: Non-Violence in Indian Tradition, London, ISBN 978-0091233402, pages 75-78, 94-106
Jump up ^ U Tahtinen (1976), Ahimsa: Non-Violence in Indian Tradition, London, ISBN 978-0091233402, pages 57-62, 109-111
Jump up ^ U Tahtinen (1976), Ahimsa: Non-Violence in Indian Tradition, London, ISBN 978-0091233402, pages 34-43, 89-97, 109-110
Jump up ^ Christopher Chapple (1993), Nonviolence to Animals, Earth, and Self in Asian Traditions, State University of New York Press, ISBN 0-7914-1498-1, pages 16-17
Jump up ^ Karin Meyers (2013), Free Will, Agency, and Selfhood in Indian Philosophy (Editors: Matthew R. Dasti, Edwin F. Bryant), Oxford University Press, ISBN 978-0199922758, pages 41-61
Jump up ^ Howard Coward (2008), The Perfectibility of Human Nature in Eastern and Western Thought, State University of New York Press, ISBN 978-0791473368, pages 103-114;
Harold Coward (2003), Encyclopedia of Science and Religion, Macmillan Reference, see Karma, ISBN 978-0028657042
Jump up ^ AL Basham (1951), History and Doctrines of the Ajivikas - a Vanished Indian Religion, Motilal Banarsidass, ISBN 978-8120812048, pages 237
Jump up ^ Damien Keown (2004), A Dictionary of Buddhism, Oxford University Press, ISBN 978-0198605607, Entry for Prapañca, Quote: "Term meaning ‘proliferation’, in the sense of the multiplication of erroneous concepts, ideas, and ideologies which obscure the true nature of reality".
Jump up ^ Lynn Foulston and Stuart Abbott (2009), Hindu Goddesses: Beliefs and Practices, Sussex Academic Press, ISBN 978-1902210438, pages 14-16
Jump up ^ Wendy Doniger O'Flaherty (1986), Dreams, Illusion, and Other Realities, University of Chicago Press, ISBN 978-0226618555, page 119
Jump up ^ Ramkrishna Bhattacharya (2011), Studies on the Carvaka/Lokayata, Anthem, ISBN 978-0857284334, page 216
Jump up ^ Padmanabh S. Jaini (2001). Collected papers on Buddhist studies. Motilal Banarsidass Publications. ISBN 9788120817760.
Jump up ^ Anatta Encyclopædia Britannica, Quote:"In Buddhism, the doctrine that there is in humans no permanent, underlying substance that can be called the soul. (...) The concept of anatta, or anatman, is a departure from the Hindu belief in atman (self)."
Jump up ^ Oliver Leaman (2000), Eastern Philosophy: Key Readings, Routledge, ISBN 978-0415173582, page 251
Jump up ^ Mike Burley (2012), Classical Samkhya and Yoga - An Indian Metaphysics of Experience, Routledge, ISBN 978-0415648875, page 39
Jump up ^ Paul Hacker (1978), Eigentumlichkeiten dr Lehre und Terminologie Sankara: Avidya, Namarupa, Maya, Isvara, in Kleine Schriften (Editor: L. Schmithausen), Franz Steiner Verlag, Weisbaden, pages 101-109 (in German), also pages 69-99
^ Jump up to: a b c John A. Grimes, A Concise Dictionary of Indian Philosophy: Sanskrit Terms Defined in English, State University of New York Press, ISBN 978-0791430675, page 238
Jump up ^ D Sharma (1966), Epistemological negative dialectics of Indian logic — Abhāva versus Anupalabdhi, Indo-Iranian Journal, 9(4): 291-300
Jump up ^ MM Kamal (1998), The Epistemology of the Carvaka Philosophy, Journal of Indian and Buddhist Studies, 46(2), pages 13-16
Jump up ^ Eliott Deutsche (2000), in Philosophy of Religion : Indian Philosophy Vol 4 (Editor: Roy Perrett), Routledge, ISBN 978-0815336112, pages 245-248
^ Jump up to: a b Christopher Bartley (2011), An Introduction to Indian Philosophy, Bloomsbury Academic, ISBN 978-1847064493, pages 46, 120
Jump up ^ Elisa Freschi (2012), Duty, Language and Exegesis in Prabhakara Mimamsa, BRILL, ISBN 978-9004222601, page 62
Jump up ^ Catherine Cornille (2009), Criteria of Discernment in Interreligious Dialogue, Wipf & Stock, ISBN 978-1606087848, pages 185-186
Jump up ^ AL Basham (1951), History and Doctrines of the Ajivikas - a Vanished Indian Religion, Motilal Banarsidass, ISBN 978-8120812048, pages 227
Jump up ^ Jerald Gort (1992), On Sharing Religious Experience: Possibilities of Interfaith Mutuality, Rodopi, ISBN 978-0802805058, pages 209-210
Jump up ^ John Cort (2010), Framing the Jina: Narratives of Icons and Idols in Jain History, Oxford University Press, ISBN 978-0195385021, pages 80, 188
Jump up ^ Andrew Fort (1998), Jivanmukti in Transformation, State University of New York Press, ISBN 978-0791439043
Jump up ^ Masao Abe and Steven Heine (1995), Buddhism and Interfaith Dialogue, University of Hawaii Press, ISBN 978-0824817527, pages 105-106
Jump up ^ Chad Meister (2009), Introducing Philosophy of Religion, Routledge, ISBN 978-0415403276, page 60; Quote: "In this chapter, we looked at religious metaphysics and saw two different ways of understanding Ultimate Reality. On the one hand, it can be understood as an absolute state of being. Within Hindu absolutism, for example, it is Brahman, the undifferentiated Absolute. Within Buddhist metaphysics, fundamental reality is Sunyata, or the Void."
Jump up ^ Christopher Key Chapple (2004), Jainism and Ecology: Nonviolence in the Web of Life, Motilal Banarsidass, ISBN 978-8120820456, page 20
Jump up ^ PT Raju (2006), Idealistic Thought of India, Routledge, ISBN 978-1406732627, page 426 and Conclusion chapter part XII
Jump up ^ Roy W Perrett (Editor, 2000), Indian Philosophy: Metaphysics, Volume 3, Taylor & Francis, ISBN 978-0815336082, page xvii;
AC Das (1952), Brahman and Māyā in Advaita Metaphysics, Philosophy East and West, Vol. 2, No. 2, pages 144-154
Jump up ^ Gandhi (1961) p. iii
Jump up ^ Weber, Thomas (2004). Gandhi as Disciple and Mentor. Cambridge University Press. p. 136. ISBN 978-1-139-45657-9.
Jump up ^ Jeffry M. Perl and Andrew P. Tuck (1985). "The Hidden Advantage of Tradition: On the Significance of T. S. Eliot's Indic Studies". Philosophy East & West. University of Hawaii Press. 35. Retrieved 2012-08-13.
Jump up ^ Eliot, Thomas Stearns (1933). After Strange Gods: A Primer of Modern Heresy. (London: Faber). p. 40.
Jump up ^ Barua, Arati (2008). Schopenhauer and Indian Philosophy: A Dialogue Between India and Germany. Northern Book Centre. p. 3. ISBN 978-81-7211-243-1.
Jump up ^ "Transcendentalism".The Oxford Companion to American Literature. James D. Hart ed.Oxford University Press, 1995. Oxford Reference Online. Web. 24 Oct.2011
Jump up ^ Werner, Karel (1998). Yoga And Indian Philosophy. Motilal Banarsidass Publ. p. 170. ISBN 978-81-208-1609-1.
Sources[edit]
Nicholson, Andrew J. (2010), Unifying Hinduism: Philosophy and Identity in Indian Intellectual History, Columbia University Press
Further reading[edit]
Apte, Vaman Shivram (1965). The Practical Sanskrit-English Dictionary (Fourth Revised and Enlarged ed.). Delhi: Motilal Banarsidass Publishers. ISBN 81-208-0567-4.
Basham, A.L. (1951). History and Doctrines of the Ājīvikas (2nd ed.). Delhi, India: Moltilal Banarsidass (Reprint: 2002). ISBN 81-208-1204-2. originally published by Luzac & Company Ltd., London, 1951.
Balcerowicz, Piotr (2015). Early Asceticism in India: Ājīvikism and Jainism (1st ed.). Routledge. p. 368. ISBN 9781317538530.
Cowell, E. B.; Gough, A. E. (2001). The Sarva-Darsana-Samgraha or Review of the Different Systems of Hindu Philosophy: Trubner's Oriental Series. Taylor & Francis. ISBN 978-0-415-24517-3.
Flood, Gavin (1996), An Introduction to Hinduism, Cambridge: Cambridge University Press, ISBN 0-521-43878-0
Gandhi, M.K. (1961). Non-Violent Resistance (Satyagraha). New York: Schocken Books.
Jain, Dulichand (1998). Thus Spake Lord Mahavir. Chennai: Sri Ramakrishna Math. ISBN 81-7120-825-8.
Michaels, Axel (2004). Hinduism: Past and Present. New York: Princeton University Press. ISBN 0-691-08953-1.
Radhakrishnan, S (1929). Indian Philosophy, Volume 1. Muirhead library of philosophy (2nd ed.). London: George Allen and Unwin Ltd.
Radhakrishnan, S.; Moore, CA (1967). A Sourcebook in Indian Philosophy. Princeton. ISBN 0-691-01958-4.
Stevenson, Leslie (2004). Ten theories of human nature. Oxford University Press. 4th edition.
Hiriyanna, M. (1995). Essentials of Indian Philosophy. Motilal Banarsidas. ISBN 978-81-208-1304-5.
External links[edit]
A History of Indian Philosophy | HTML ebook (vol. 1) | (vol. 2) | (vol. 3) | (vol. 4) | (vol. 5)
A recommended reading guide from the philosophy department of University College, London: London Philosophy Study Guide — Indian Philosophy
Articles at the Internet Encyclopedia of Philosophy
Indian Psychology Institute The application of Indian Philosophy to contemporary issues in Psychology
A History of Indian Philosophy by Surendranath Dasgupta (5 Volumes) at archive.org
Indian Idealism by Surendranath Dasgupta at archive.org
The Essentials of Indian Philosophy by Prof. Mysore Hiriyanna at archive.org
Outlines of Indian Philosophy by Prof. Mysore Hiriyanna at archive.org
Indian Philosophy by Dr. Sarvepalli Radhakrishnan (2 Volumes) at archive.org
History of Philosophy – Eastern and Western Edited by Dr. Sarvepalli Radhakrishnan (2 Volumes) at archive.org
Indian Schools of Philosophy and Theology (Jiva Institute)
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Price discrimination
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Student discounts, which participating businesses offer to individuals enrolled as full-time postsecondary students and who possess valid student identification (like this student discount card), are a common example of price discrimination.
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets.[1][2][3] Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy.[3] Price differentiation essentially relies on the variation in the customers' willingness to pay[2][3][4] and in the elasticity of their demand.
The term differential pricing is also used to describe the practice of charging different prices to different buyers for the same quality and quantity of a product,[5] but it can also refer to a combination of price differentiation and product differentiation.[3] Other terms used to refer to price discrimination include equity pricing, preferential pricing,[6] dual pricing[4] and tiered pricing.[7] Within the broader domain of price differentiation, a commonly accepted classification dating to the 1920s is:[8][9]
Personalized pricing (or first-degree price differentiation) — selling to each customer at a different price; this is also called one-to-one marketing.[8] The optimal incarnation of this is called perfect price discrimination and maximizes the price that each customer is willing to pay.[8]
Product versioning[2][10] or simply versioning (or second-degree price differentiation) — offering a product line[8] by creating slightly different products for the purpose of price differentiation,[2][10] i.e. a vertical product line.[11] Another name given to versioning is menu pricing.[9][12]
Group pricing (or third-degree price differentiation) — dividing the market into segments and charging a different price to each segment (but the same price to each member of that segment).[8][13] This is essentially a heuristic approximation that simplifies the problem in face of the difficulties with personalized pricing.[9][14] Typical examples include student discounts[13] and seniors' discounts.
Contents
1 Theoretical basis
2 Types
2.1 First degree
2.2 Second degree
2.3 Third degree
2.4 Combination
3 Modern taxonomy
4 Two part tariff
5 Explanation
6 Examples of price discrimination
6.1 Retail price discrimination
6.2 Travel industry
6.3 Coupons
6.4 Premium pricing
6.5 Segmentation by age group, student status, ethnicity and citizenship
6.6 Discounts for members of certain occupations
6.7 Retail incentives
6.8 Incentives for industrial buyers
6.9 Gender-based examples
6.10 International price discrimination
6.11 Academic pricing
6.12 Sliding scale fees
6.13 Weddings
7 Two necessary conditions for price discrimination
8 User-controlled price discrimination
9 See also
10 Notes
11 External links
Theoretical basis[edit]
In a theoretical market with perfect information, perfect substitutes, and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage, price discrimination can only be a feature of monopolistic and oligopolistic markets,[15] where market power can be exercised. Otherwise, the moment the seller tries to sell the same good at different prices, the seller at the lower price can arbitrage by selling to the consumer buying at the higher price but with a tiny discount. However, product heterogeneity, market frictions or high fixed costs (which make marginal-cost pricing unsustainable in the long run) can allow for some degree of differential pricing to different consumers, even in fully competitive retail or industrial markets.
The effects of price discrimination on social efficiency are unclear. Output can be expanded when price discrimination is very efficient. Even if output remains constant, price discrimination can reduce efficiency by misallocating output among consumers[citation needed].
Price discrimination requires market segmentation and some means to discourage discount customers from becoming resellers and, by extension, competitors. This usually entails using one or more means of preventing any resale: keeping the different price groups separate, making price comparisons difficult, or restricting pricing information. The boundary set up by the marketer to keep segments separate is referred to as a rate fence. Price discrimination is thus very common in services where resale is not possible; an example is student discounts at museums: In theory, students, for their condition as students, may get lower prices than the rest of the population for a certain product or service, and later will not become resellers, since what they received, may only be used or consumed by them. Another example of price discrimination is intellectual property, enforced by law and by technology. In the market for DVDs, laws require DVD players to be designed and produced with hardware or software that prevents inexpensive copying or playing of content purchased legally elsewhere in the world at a lower price. In the US the Digital Millennium Copyright Act has provisions to outlaw circumventing of such devices to protect the enhanced monopoly profits that copyright holders can obtain from price discrimination against higher price market segments.
Price discrimination can also be seen where the requirement that goods be identical is relaxed. For example, so-called "premium products" (including relatively simple products, such as cappuccino compared to regular coffee with cream[dubious – discuss]) have a price differential that is not explained by the cost of production. Some economists have argued that this is a form of price discrimination exercised by providing a means for consumers to reveal their willingness to pay[citation needed].
Types[edit]
First degree[edit]
Exercising first degree (or perfect or primary) price discrimination requires the monopoly seller of a good or service to know the absolute maximum price (or reservation price) that every consumer is willing to pay. By knowing the reservation price, the seller is able to sell the good or service to each consumer at the maximum price he is willing to pay, and thus transform the consumer surplus into revenues. So the profit is equal to the sum of consumer surplus and producer surplus. The marginal consumer is the one whose reservation price equals to the marginal cost of the product. The seller produces more of his product than he would to achieve monopoly profits with no price discrimination, which means that there is no deadweight loss. Examples of where this might be observed are in markets where consumers bid for tenders, though, in this case, the practice of collusive tendering could reduce the market efficiency.[16]
Second degree[edit]
In second degree price discrimination, price varies according to quantity demanded. Larger quantities are available at a lower unit price. This is particularly widespread in sales to industrial customers, where bulk buyers enjoy higher discounts.[17]
Additionally to second degree price discrimination, sellers are not able to differentiate between different types of consumers. Thus, the suppliers will provide incentives for the consumers to differentiate themselves according to preference, which is done by quantity "discounts", or non-linear pricing. This allows the supplier to set different prices to the different groups and capture a larger portion of the total market surplus.
In reality, different pricing may apply to differences in product quality as well as quantity. For example, airlines often offer multiple classes of seats on flights, such as first class and economy class, with the first class passengers receiving wine, beer and spirits with their ticket and the economy passengers offered only juice, pop and water. This is a way to differentiate consumers based on preference, and therefore allows the airline to capture more consumer's surplus.
Third degree[edit]
Third degree price discrimination, means charging a different price to different consumer groups. For example, rail and tube (subway) travellers can be subdivided into commuter and casual travellers, and cinema goers can be subdivided into adults and children, with some theatres also offering discounts to full-time students and seniors. Splitting the market into peak and off peak use of a service is very common and occurs with gas, electricity, and telephone supply, as well as gym membership and parking charges. Some parking lots charge less for "early bird" customers who arrive at the parking lot before a certain time.
(Some of these examples are not pure "price discrimination", in that the differential price is related to production costs: the marginal cost of providing electricity or car parking spaces is very low outside peak hours. Incentivizing consumers to switch to off-peak usage is done as much to minimize costs as to maximize revenue.)
Combination[edit]
These types are not mutually exclusive. Thus a company may vary pricing by location, but then offer bulk discounts as well. Airlines use several different types of price discrimination, including:
Bulk discounts to wholesalers, consolidators, and tour operators
Incentive discounts for higher sales volumes to travel agents and corporate buyers
Seasonal discounts, incentive discounts, and even general prices that vary by location. The price of a flight from say, Singapore to Beijing can vary widely if one buys the ticket in Singapore compared to Beijing (or New York or Tokyo or elsewhere).
Discounted tickets requiring advance purchase and/or Saturday stays. Both restrictions have the effect of excluding business travelers, who typically travel during the workweek and arrange trips on shorter notice.
First degree price discrimination based on customer. Hotel or car rental firms may quote higher prices to their loyalty program's top tier members than to the general public.[citation needed]
Modern taxonomy[edit]
The first/second/third degree taxonomy of price discrimination is due to Pigou (Economics of Welfare, 4th edition, 1932). See, e.g., modern taxonomy of price discrimination. However, these categories are not mutually exclusive or exhaustive. Ivan Png (Managerial Economics, 2nd edition, 2002) suggests an alternative taxonomy:
Complete discrimination
where each user purchases up to the point where the user's marginal benefit equals the marginal cost of the item;
Direct segmentation
where the seller can condition price on some attribute (like age or gender) that directly segments the buyers;
Indirect segmentation
where the seller relies on some proxy (e.g., package size, usage quantity, coupon) to structure a choice that indirectly segments the buyers.
The hierarchy—complete/direct/indirect—is in decreasing order of profitability and information requirement. Complete price discrimination is most profitable, and requires the seller to have the most information about buyers. Indirect segmentation is least profitable, and requires the seller to have the least information about buyers.
Two part tariff[edit]
The two-part tariff is another form of price discrimination where the producer charges an initial fee then a secondary fee for the use of the product. An example of this is razors, you pay an initial cost for the razor and then pay for the replacement blades. This pricing strategy works because it shifts the demand curve to the right: since you have already paid for the initial blade holder you will buy the blades which are now cheaper than buying a disposable razor.
Explanation[edit]
Sales revenue without and with Price Discrimination
The purpose of price discrimination is generally to capture the market's consumer surplus. This surplus arises because, in a market with a single clearing price, some customers (the very low price elasticity segment) would have been prepared to pay more than the single market price. Price discrimination transfers some of this surplus from the consumer to the producer/marketer. Strictly, a consumer surplus need not exist, for example where some below-cost selling is beneficial due to fixed costs or economies of scale. An example is a high-speed internet connection shared by two consumers in a single building; if one is willing to pay less than half the cost, and the other willing to make up the rest but not to pay the entire cost, then price discrimination is necessary for the purchase to take place.
It can be proved mathematically that a firm facing a downward sloping demand curve that is convex to the origin will always obtain higher revenues under price discrimination than under a single price strategy. This can also be shown geometrically.
In the top diagram, a single price (P) is available to all customers. The amount of revenue is represented by area P, A, Q, O. The consumer surplus is the area above line segment P, A but below the demand curve (D).
With price discrimination, (the bottom diagram), the demand curve is divided into two segments (D1 and D2). A higher price (P1) is charged to the low elasticity segment, and a lower price (P2) is charged to the high elasticity segment. The total revenue from the first segment is equal to the area P1,B, Q1,O. The total revenue from the second segment is equal to the area E, C,Q2,Q1. The sum of these areas will always be greater than the area without discrimination assuming the demand curve resembles a rectangular hyperbola with unitary elasticity. The more prices that are introduced, the greater the sum of the revenue areas, and the more of the consumer surplus is captured by the producer.
Note that the above requires both first and second degree price discrimination: the right segment corresponds partly to different people than the left segment, partly to the same people, willing to buy more if the product is cheaper.
It is very useful for the price discriminator to determine the optimum prices in each market segment. This is done in the next diagram where each segment is considered as a separate market with its own demand curve. As usual, the profit maximizing output (Qt) is determined by the intersection of the marginal cost curve (MC) with the marginal revenue curve for the total market (MRt).
Multiple Market Price Determination
The firm decides what amount of the total output to sell in each market by looking at the intersection of marginal cost with marginal revenue (profit maximization). This output is then divided between the two markets, at the equilibrium marginal revenue level. Therefore, the optimum outputs are Qa and Qb. From the demand curve in each market we can determine the profit maximizing prices of Pa and Pb.
It is also important to note that the marginal revenue in both markets at the optimal output levels must be equal, otherwise the firm could profit from transferring output over to whichever market is offering higher marginal revenue.
Given that Market 1 has a price elasticity of demand of E1 and Market 2 of E2, the optimal pricing ration in Market 1 versus Market 2 is P 1 / P 2 = [ 1 + 1 / E 2 ] / [ 1 + 1 / E 1 ] {\displaystyle P1/P2=[1+1/E2]/[1+1/E1]} .
Examples of price discrimination[edit]
Retail price discrimination[edit]
Manufacturers may sell their products to similarly situated retailers at different prices based solely on the volume of products purchased.
Travel industry[edit]
Airlines and other travel companies use differentiated pricing regularly, as they sell travel products and services simultaneously to different market segments. This is often done by assigning capacity to various booking classes, which sell for different prices and which may be linked to fare restrictions. The restrictions or "fences" help ensure that market segments buy in the booking class range that has been established for them. For example, schedule-sensitive business passengers who are willing to pay $300 for a seat from city A to city B cannot purchase a $150 ticket because the $150 booking class contains a requirement for a Saturday-night stay, or a 15-day advance purchase, or another fare rule that discourages, minimizes, or effectively prevents a sale to business passengers.
Notice however that in this example "the seat" is not really always the same product. That is, the business person who purchases the $300 ticket may be willing to do so in return for a seat on a high-demand morning flight, for full refundability if the ticket is not used, and for the ability to upgrade to first class if space is available for a nominal fee. On the same flight are price-sensitive passengers who are not willing to pay $300, but who are willing to fly on a lower-demand flight ( one leaving an hour earlier), or via a connection city (not a non-stop flight), and who are willing to forgo refundability.
On the other hand, an airline may also apply differential pricing to "the same seat" over time, e.g. by discounting the price for an early or late booking (without changing any other fare condition). This could present an arbitrage opportunity in the absence of any restriction on reselling. However, passenger name changes are typically prevented or financially penalized by contract.
Since airlines often fly multi-leg flights, and since no-show rates vary by segment, competition for the seat has to take in the spatial dynamics of the product. Someone trying to fly A-B is competing with people trying to fly A-C through city B on the same aircraft. This is one reason airlines use yield management technology to determine how many seats to allot for A-B passengers, B-C passengers, and A-B-C passengers, at their varying fares and with varying demands and no-show rates.
With the rise of the Internet and the growth of low fare airlines, airfare pricing transparency has become far more pronounced. Passengers discovered it is quite easy to compare fares across different flights or different airlines. This helped put pressure on airlines to lower fares. Meanwhile, in the recession following the September 11, 2001, attacks on the U.S., business travelers and corporate buyers made it clear to airlines that they were not going to be buying air travel at rates high enough to subsidize lower fares for non-business travelers. This prediction has come true, as vast numbers of business travelers are buying airfares only in economy class for business travel.
There are sometimes group discounts on rail tickets and passes. This may be in view of the alternative of going by car together.
Coupons[edit]
The use of coupons in retail is an attempt to distinguish customers by their reserve price. The assumption is that people who go through the trouble of collecting coupons have greater price sensitivity than those who do not. Thus, making coupons available enables, for instance, breakfast cereal makers to charge higher prices to price-insensitive customers, while still making some profit of customers who are more price-sensitive.
Premium pricing[edit]
For certain products, premium products are priced at a level (compared to "regular" or "economy" products) that is well beyond their marginal cost of production. For example, a coffee chain may price regular coffee at $1, but "premium" coffee at $2.50 (where the respective costs of production may be $0.90 and $1.25). Economists such as Tim Harford in the Undercover Economist have argued that this is a form of price discrimination: by providing a choice between a regular and premium product, consumers are being asked to reveal their degree of price sensitivity (or willingness to pay) for comparable products. Similar techniques are used in pricing business class airline tickets and premium alcoholic drinks, for example.
This effect can lead to (seemingly) perverse incentives for the producer. If, for example, potential business class customers will pay a large price differential only if economy class seats are uncomfortable while economy class customers are more sensitive to price than comfort, airlines may have substantial incentives to purposely make economy seating uncomfortable. In the example of coffee, a restaurant may gain more economic profit by making poor quality regular coffee—more profit is gained from up-selling to premium customers than is lost from customers who refuse to purchase inexpensive but poor quality coffee. In such cases, the net social utility should also account for the "lost" utility to consumers of the regular product, although determining the magnitude of this foregone utility may not be feasible.
Segmentation by age group, student status, ethnicity and citizenship[edit]
Many movie theaters, amusement parks, tourist attractions, and other places have different admission prices per market segment: typical groupings are Youth/Child, Student, Adult, Senior Citizen, Local and Foreigner. Each of these groups typically have a much different demand curve. Children, people living on student wages, and people living on retirement generally have much less disposable income. Foreigners may be perceived as being more wealthy than locals and therefore being capable of paying more for goods and services - sometimes this can be more than 1000 times as much[4]. Market stall-holders and individual public transport providers may also insist on higher prices for their goods and services when dealing with foreigners (sometimes called the "White Man Tax").[18][19] Some goods - such as housing - may be offered at cheaper prices for certain ethnic groups.[20]
Discounts for members of certain occupations[edit]
Some businesses may offer reduced prices members of some occupations, such as school teachers (see below), police and military personnel. In addition to increased sales to the target group, businesses benefit from the resulting positive publicity, leading to increased sales to the general public.
Retail incentives[edit]
A variety of incentive techniques may be used to increase market share or revenues at the retail level. These include discount coupons, rebates, bulk and quantity pricing, seasonal discounts, and frequent buyer discounts.
Incentives for industrial buyers[edit]
Many methods exist to incentivize wholesale or industrial buyers. These may be quite targeted, as they are designed to generate specific activity, such as buying more frequently, buying more regularly, buying in bigger quantities, buying new products with established ones, and so on. They may also be designed to reduce the administrative and finance costs of processing each transaction. Thus, there are bulk discounts, special pricing for long-term commitments, non-peak discounts, discounts on high-demand goods to incentivize buying lower-demand goods, rebates, and many others. This can help the relations between the firms involved.
Gender-based examples[edit]
Main article: Gender-based price discrimination in the United States
Gender-based price discrimination is the practice of offering identical or similar services and products to men and women at different prices when the cost of producing the products and services is the same.[21] In the United States, gender-based price discrimination has been a source of debate.[22] In 1992, the New York City Department of Consumer Affairs (“DCA”) conducted an investigation of “price bias against women in the marketplace”.[23] The DCA’s investigation concluded that women paid more than men at used car dealers, dry cleaners, and hair salons.[23] The DCA’s research on gender pricing in New York City brought national attention to gender-based price discrimination and the financial impact it has on women.
With consumer products, differential pricing is usually not based explicitly on the actual gender of the purchaser, but is achieved implicitly by the use of differential packaging, labelling, or colour schemes designed to appeal to male or female consumers. In many cases, where the product is marketed to make an attractive gift, the gender of the purchaser may be different from that of the end user.
In 1995, California Assembly’s Office of Research studied the issue of gender-based price discrimination of services and estimated that women effectively paid an annual “gender tax” of approximately $1,351.00 for the same services as men.[24] It was also estimated that women, over the course of their lives, spend thousands of dollars more than men to purchase similar products.[24] For example, prior to the enactment of the Patient Protection and Affordable Care Act[25] (“Affordable Care Act”), health insurance companies charged women higher premiums for individual health insurance policies than men. Under the Affordable Care Act, health insurance companies are now required to offer the same premium price to all applicants of the same age and geographical locale without regard to gender.[26] However, there is no federal law banning gender-based price discrimination in the sale of products.[27] Instead, several cities and states have passed legislation prohibiting gender-based price discrimination on products and services.
In Europe, motor insurance premiums have historically been higher for men than for women, a practice that the insurance industry attempts to justify on the basis of different levels of risk. The EU has banned this practice; however, there is evidence that it is being replaced by "proxy discrimination", that is, discrimination on the basis of factors that are strongly correlated with gender: for example, charging construction workers more than midwives[28].
International price discrimination[edit]
Pharmaceutical companies may charge customers living in wealthier countries a much higher price than for identical drugs in poorer nations, as is the case with the sale of antiretroviral drugs in Africa. Since the purchasing power of African consumers is much lower, sales would be extremely limited without price discrimination. The ability of pharmaceutical companies to maintain price differences between countries is often either reinforced or hindered by national drugs laws and regulations, or the lack thereof.[29]
Even online sales for non material goods, which do not have to be shipped, may change according to the geographic location of the buyer.
Academic pricing[edit]
Companies will often offer discounted goods and software to students and faculty at school and university levels. These may be labeled as academic versions, but perform the same as the full price retail software. Academic versions of the most expensive software suites may be free or significantly cheaper than the retail price of standard versions.[citation needed] Some academic software may have differing licenses than retail versions, usually disallowing their use in activities for profit or expiring the license after a given number of months. This also has the characteristics of an "initial offer" - that is, the profits from an academic customer may come partly in the form of future non-academic sales due to vendor lock-in.
Sliding scale fees[edit]
Sliding scale fees are when different customers are charged different prices based on their income, which is used as a proxy for their willingness or ability to pay. For example, some nonprofit law firms charge on a sliding scale based on income and family size. Thus the clients paying a higher price at the top of the fee scale help subsidize the clients at the bottom of the scale. This differential pricing enables the nonprofit to serve a broader segment of the market than they could if they only set one price.[30]
Weddings[edit]
Goods and services for weddings are sometimes priced at a higher rate than identical goods for normal customers.[31][32][33]
Two necessary conditions for price discrimination[edit]
There are two conditions that must be met if a price discrimination scheme is to work. First the firm must be able to identify market segments by their price elasticity of demand and second the firms must be able to enforce the scheme.[34] For example, airlines routinely engage in price discrimination by charging high prices for customers with relatively inelastic demand - business travelers - and discount prices for tourist who have relatively elastic demand. The airlines enforce the scheme by enforcing a no resale policy on the tickets preventing a tourist from buying a ticket at a discounted price and selling it to a business traveler (arbitrage). Airlines must also prevent business travelers from directly buying discount tickets. Airlines accomplish this by imposing advance ticketing requirements or minimum stay requirements — conditions that would be difficult for average business traveler to meet.[35]
User-controlled price discrimination[edit]
While the conventional theory of price discrimination generally assumes that prices are set by the seller, there is a variant form in which prices are set by the buyer, such as in the form of pay what you want pricing. Such user-controlled price discrimination exploits similar ability to adapt to varying demand curves or individual price sensitivities, and may avoid the negative perceptions of price discrimination as imposed by a seller.
See also[edit]
Geo (marketing)
Marketing
Microeconomics
Outline of industrial organization
Pay what you want
Ramsey problem
Redlining
Resale price maintenance
Robinson-Patman Act
Sliding scale fees
Ticket resale
Yield management
Notes[edit]
Jump up ^ Krugman, Paul R.; Maurice Obstfeld (2003). "Chapter 6: Economies of Scale, Imperfect Competition and International Trade". International Economics - Theory and Policy (6th ed.). p. 142.
^ Jump up to: a b c d Robert Phillips (2005). Pricing and Revenue Optimization. Stanford University Press. p. 74. ISBN 978-0-8047-4698-4.
^ Jump up to: a b c d Peter Belobaba; Amedeo Odoni; Cynthia Barnhart (2009). The Global Airline Industry. John Wiley & Sons. p. 77. ISBN 978-0-470-74472-7.
^ Jump up to: a b c Apollo, M. (2014). Dual Pricing–Two Points of View (Citizen and Non-citizen) Case of Entrance Fees in Tourist Facilities in Nepal. Procedia-Social and Behavioral Sciences, 120, 414-422. https://doi.org/10.1016/j.sbspro.2014.02.119
Jump up ^ William M. Pride; O. C. Ferrell (2011). Foundations of Marketing, 5th ed. Cengage Learning. p. 374. ISBN 1-111-58016-2.
Jump up ^ Ruth Macklin (2004). Double Standards in Medical Research in Developing Countries. Cambridge University Press. p. 166. ISBN 978-0-521-54170-1.
Jump up ^ Bernard M. Hoekman; Aaditya Mattoo; Philip English (2002). Development, Trade, and the WTO: A Handbook. World Bank Publications. p. 378. ISBN 978-0-8213-4997-7.
^ Jump up to: a b c d e Carl Shapiro (1999). Information Rules: A Strategic Guide to the Network Economy. Harvard Business School Press. p. 39. ISBN 978-0-87584-863-1.
^ Jump up to: a b c Paul Belleflamme; Martin Peitz (2010). Industrial Organization: Markets and Strategies. Cambridge University Press. p. 196. ISBN 978-0-521-86299-8.
^ Jump up to: a b David K. Hayes; Allisha Miller (2011). Revenue Management for the Hospitality Industry. John Wiley and Sons. p. 115. ISBN 978-1-118-13692-8.
Jump up ^ Robert Phillips (2005). Pricing and Revenue Optimization. Stanford University Press. pp. 82–83. ISBN 978-0-8047-4698-4.
Jump up ^ Lynne Pepall; Dan Richards; George Norman (2011). Contemporary Industrial Organization: A Quantitative Approach. John Wiley and Sons. p. 87. ISBN 978-1-118-13898-4.
^ Jump up to: a b Robert Phillips (2005). Pricing and Revenue Optimization. Stanford University Press. p. 78. ISBN 978-0-8047-4698-4.
Jump up ^ Robert Phillips (2005). Pricing and Revenue Optimization. Stanford University Press. p. 77. ISBN 978-0-8047-4698-4.
Jump up ^ ("Price Discrimination and Imperfect Competition", Lars A. Stole)
Jump up ^ Frank, Robert H. (2010): Microeconomics and Behavior, 8th Ed., McGraw-Hill Irwin, pp. 393-394.
Jump up ^ Frank, Robert H. (2010): Microeconomics and Behavior, 8th Ed., McGraw-Hill Irwin, p. 395.
Jump up ^ karenbryson (19 February 2015). "The "White Man's" Tax". Retrieved 29 March 2017.
Jump up ^ thebeijinger (18 June 2014). "Beijing's 'White Man Tax' Pegged at a Median 16% in Unscientific Survey". Retrieved 29 March 2017.
Jump up ^ "Bumiputera discount: A sensitive topic that must be addressed". 6 August 2013. Retrieved 29 March 2017.
Jump up ^ See generally PRICE DISCRIMINATION, Black’s Law Dictionary (10th ed. 2014).
Jump up ^ See, e.g., Civil Rights--Gender Discrimination--California Prohibits Gender-Based Pricing--Cal. Civ. Code. § 51.6 (West Supp. 1996), 109 HARV. L. REV. 1839, 1839 (1996) (“Differential pricing of services is one of America's last remaining vestiges of formal gender-based discrimination.”); Joyce McClements and Cheryl Thomas, Public Accommodations Statutes: Is Ladies' Night Out?, 37 MERCER L. REV. 1605, 1618 (1986); Heidi Paulson, Ladies' Night Discounts: Should We Bar Them or Promote Them?, 32 B.C. L. Rev. 487, 528 (1991) (arguing that ladies' night promotions encourage paternalistic attitudes toward women and encourage stereotypes of both men and women).
^ Jump up to: a b Bessendorf, Anna (December 2015). "From Cradle to Cane: The Cost of Being a Female Consumer" (PDF). New York City Department of Consumer Affairs. Retrieved August 25, 2018.
^ Jump up to: a b California State Senate, Gender Tax Repeal Act of 1995, AB 1100 (Aug. 31, 1995).
Jump up ^ Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010) (to be codified in scattered titles and sections)[hereinafter Affordable Care Act].
Jump up ^ Affordable Care Act § 2701, 124 Stat. 119, 37-38
Jump up ^ Danielle Paquette, Why you should always buy the men’s version of almost anything, The Washington Post (December 22, 2015), https://www.washingtonpost.com/news/wonk/wp/2015/12/22/women-really-do-pay-more-for-razors-and-almost-everything-else/.
Jump up ^ Collinson, Patrick (14 January 2017). "EU's gender ruling on car insurance has made inequality worse". the Guardian.
Jump up ^ Pogge, Thomas (2008). World poverty and human rights : cosmopolitan responsibilities and reforms (PDF) (2. ed.). Cambridge [u.a.]: Polity Press. ISBN 978-0745641447.
Jump up ^ Zuckerman, Michael (August 7, 2014). "The Utah Lawyers Who Are Making Legal Services Affordable". The Atlantic. Retrieved 4 December 2014.
Jump up ^ Dubner, Stephen J. (3 October 2011). "Getting Married? Then Get Ready for Price Discrimination". Retrieved 29 March 2017.
Jump up ^ Rampell, Catherine (3 December 2013). "The Wedding Fix Is In". Retrieved 29 March 2017 – via NYTimes.com.
Jump up ^ "Wedding costs - Shopping for special occasions". Retrieved 29 March 2017.
Jump up ^ Samuelson & Marks, Managerial Economics 4th ed. (Wiley 2003)
Jump up ^ Samuelson & Marks, Managerial Economics 4th ed. (Wiley 2003) Airlines typically attempt to maximize revenue rather than profits because airlines variable costs are small. Thus airlines use pricing strategies designed to fill seats rather than equate marginal revenue and marginal costs.
External links[edit]
style="background: #9FF; color: black; vertical-align: middle; text-align: center; " class="free table-free"|Free
Price Discrimination and Imperfect Competition Lars Stole
Pricing Information Hal Varian.
Price Discrimination for Digital Goods Arun Sundararajan.
Price Discrimination Discussion piece from The Filter
Joelonsoftware's blog entry on Price Discrimination
Taken to the Cleaners? Steven Landsburg's explanation of Dry Cleaner pricing.
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