Market Failures & Professional Dilemmas
Study Question)
Based on the Edwards article which market failures or imperfections are present in the “Lobster Thermidor” case? And can you identify any in your professional life? Based on the Halbert & Ingulli reading (“Making An Ethical Decision”) apply the methods of ethical reasoning to these situations.
Two market failures can be observed in the “Lobster Thermidor” case, a tragedy of public goods and informational deficiencies. First of all, the divers have to dive deeper, to the limit of diving safety, since overfishing has made the lobsters rare and to catch the lobster less than 30 meter down is getting harder and harder. This is the very typical case of public goods, where the public resources such as the lobsters under the sea are usually over-consumed by the individuals who try to maximize one’s interest. Deforestation, which has destroyed the entire farming industry and forced Miskitos out to entirely rely on diving, was another tragedy caused by the overconsumption of the public goods, forest. Secondly, both the divers and the end-consumers make wrong, irrational decisions cause of the lack of information. Divers, who do not recognize the true market price of lobsters as well as the true price of potential risks, bargain away their goods with little danger pay allowances. Also, the consumers, who have no idea about the severe fishing environment in Honduras, are reluctant to pay more than current prices, formed lower than it should be at the cost of human lives.
The company where I worked prior to school has always tried its best to remove any little elements of competition in its area. If there were a small but promising start-up with innovative idea and technology, that company used every means –most were legal or grey while a few were nearly illegal- to get rid of the potential threats. For instance, it quickly imitates the new technology of the start-up, take out the similar patent, scout the core human resources, block off the critical
Based on the Edwards article which market failures or imperfections are present in the “Lobster Thermidor” case? And can you identify any in your professional life? Based on the Halbert & Ingulli reading (“Making An Ethical Decision”) apply the methods of ethical reasoning to these situations.
Two market failures can be observed in the “Lobster Thermidor” case, a tragedy of public goods and informational deficiencies. First of all, the divers have to dive deeper, to the limit of diving safety, since overfishing has made the lobsters rare and to catch the lobster less than 30 meter down is getting harder and harder. This is the very typical case of public goods, where the public resources such as the lobsters under the sea are usually over-consumed by the individuals who try to maximize one’s interest. Deforestation, which has destroyed the entire farming industry and forced Miskitos out to entirely rely on diving, was another tragedy caused by the overconsumption of the public goods, forest. Secondly, both the divers and the end-consumers make wrong, irrational decisions cause of the lack of information. Divers, who do not recognize the true market price of lobsters as well as the true price of potential risks, bargain away their goods with little danger pay allowances. Also, the consumers, who have no idea about the severe fishing environment in Honduras, are reluctant to pay more than current prices, formed lower than it should be at the cost of human lives.
The company where I worked prior to school has always tried its best to remove any little elements of competition in its area. If there were a small but promising start-up with innovative idea and technology, that company used every means –most were legal or grey while a few were nearly illegal- to get rid of the potential threats. For instance, it quickly imitates the new technology of the start-up, take out the similar patent, scout the core human resources, block off the critical