v5n4: Kline on Schleper on Exploitation and Just PricesPosted: August 5, 2017 Filed under: Uncategorized Leave a comment
Exploitation and Just Price Theory by William Kline
A COMMENTARY ON Schleper, M., C. Blome, and D. Wuttke, D. (2015), “The Dark Side of Buyer Power: Supplier Exploitation and the Role of Ethical Climates,” J Bus Ethics 140(1): 97-114. https://doi.org/10.1007/s10551-015-2681-6
Schleper, Blome, and Wuttke attempt to use just price theory to define exploitation. According to the authors, a competitive market equilibrium defines a just price. When certain asymmetries in bargaining power exist, trading at any lower price constitutes unethical exploitation. I argue that a competitive market equilibrium does not provide a price that could be considered just by their own standards, and thus fails to ground a theory of exploitation.
To download the full PDF, click here: Kline on Schleper
William Kline, Ph.D., is Associate Professor of Business Administration at University of Illinois, Springfield. His personal website is here.