Please note that there are two posts needed to successfully complete the discussion board assignment. An initial post addressing the discussion board topic is due by end of day Saturday. A response post to at least one other student is due by end of day Tuesday.
Do you think more regulations and standards are needed for setting product prices, or should all companies be free to charge any prices they want? Why, or why not?
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Student: Christopher Reed
I believe the answer to this question has many facets to consider and is not very simple. Regulations specific to setting product prices are not necessary for the majority of products sold by businesses in this country, or even the world. The market will correct itself, regardless of regulations on pricing. If a company prices their product too high, then consumers simply will not buy that product. They will either go with a competitor with a lower price, or forego that item all together, which would ultimately force the business to reduce their price. Supply and demand, as well as competition, all have a way of correcting inappropriate pricing set by businesses. There are, however, exceptions to this and some products do require pricing regulations. Things such as medication, utility services, and public transportation require regulation. These are areas that the free market cannot sufficiently control the pricing on. Certain medications have patents held by companies that prevent competition. If a person needs a lifesaving medication, it must be affordable, therefore pricing must be regulated. Utilities, like water and electricity, are often only available through one source for many Americans and these services are instrumental to survival. The utility companies could charge as much as they want and Americans would be forced to pay it, so it is important to have regulation in this market. The same can be said for public transportation. In most cities, whether it’s a subway or bus system, public transportation is offered by one company. Many people rely on public transportation to make it to and from work, so it must pricing must be regulated. These are all areas that currently have some level of pricing regulations in America. So ultimately, when answering the questions if there should be more regulations, I think the answer is probably no, at least in the United States. I think the areas that require regulations have them in place, though they may need a little fine-tuning. Increasing regulations in other areas will likely end up hurting business and ultimately the country’s economy. I believe the free market should be allowed to dictate pricing whenever possible.