Question

Employ Bentham’s principle of utility (pleasure-pain calculus) to explain each of the following:

(a) long wait lines at a fast food restaurant;

(b) all else being equal, occupations characterized by high risk of on- the-job injury

(c) death provide higher annual pay than safer jobs; and

(d) when two products are of equal quality, consumers tend to opt for the lower priced one.

Answer 1

Bentham's Principle of utility describes the fundamental role of pain and pleasure of human life. His principle is based on the measure of maximising pleausure, by minimising pain. This is because everybody wants pleausre through out their life. At the same time no body wants pain or sufferings. According to him when the idividuals are deciding what to do for themselves, they consider only their own utility.  

a. Queing theory is the mathematical study which emphasises on delay of waiting in line. Here we are talking about the long queue in the restaurants. Wating includes the time consumed for arrival process, service process, number of servers, number of system places, nmber of customers standing in  the queue, car parking, etc. All these are time consuming and not only restaurants, other places like hospitals, banks, cinema theatres and such other places, where there is a chance for people to make  big queues reglarly, should make  an alternate strategy to reduce waiting time at any cost.  

According to Bethams' theory, people waiting in the queue are required to paurchase something, which gives them some sort of satisfaction. In the case of restaurant, the long queue is an indication of quality of food and the service of the restaurant. But the theory of utility explains that a persons utility depends upon his demand. If they are standing in a long queue, if it makes them feel hungry, thirsty, or some other feeling of tiredness, they try to have some other soft drinks, chocolates or anything to overcome such difficulties. It finally results a less appetite for the required food and sometimes they don't even feel the food so tasty as the expected level. In certain cases senior citizens those who above sixty and all feels it difficult to remain in the queue may express their unwillingness to remain in the queue for long time and leave the place looking for another one. Sometimes mothers along with babies or kids who creates lot of problems also forced to vacate.   All these affects the total revenue, and becuase of the word of mouth communication it creates a negative reputation to the business unit eventhough the quality remains the same. Hence it is better not to promote people to remain in the queue for a long stime.  

b. Workers' high risk on the job injury is a matter of concern of Betham's Utility Theory. Medical fees and other related expenses is provided by the meployer during such cases, as a part of employee's compensation. If they are on medical leave, they will get sick pay compensation. Eventhen according Betham's theory, instead of enjoying the job opportunity, and security, the employees are suffering risk and fear of injury. Pleasure vs Pain theory is applicable here. Hence according to Betham's theory, the employees who are working in such difficult and risky environment should be provided more monetary and non monetary benefits.

c.If we are supposed to go for a job, which is life threatening and risky in nature, we should at least have a handsome remuneration package. As per the Bethams Pleasure vs Pain theory, we know we are not in a safe zone. Our life is in risk. We are going through pain and suffering. Hence the only way to overcome this pain and suffering situation is to minimise pain and maximise pleasure. Inorder to maximise pleasure the employees should be provide higher remuneration package, so that they can be happy and remain confident, thinking that if anything happens to them, either disability or death, in connection with their job, they along with their family will not going to suffer. Here by minimising pain, pleaure maximises.

d. Human wants are unlimited. Means and scares. Scares means have alernative uses. Hence people are interested to buy products of similar category, because they can save money, which have some other uses. Hence people can enjoy double benefit, by purchasing the product and can also have cash in hand. Hence they can maximise pleasure as explains in the Batham's Theory.