Let the buyer beware…


CaveatEmptor

 

  1. When we spend 50 ps to buy ourselves a candy, we are not too worried about what candy we buy.
  2. When we spend 10 bucks to buy ourselves a chocolate bar, we are still not too worried about what chocolate we buy.
  3. When we spend 200 bucks to fill fuel in our two wheeler, we ensure that the fuel meter is set to zero and all the fuel goes inside the petrol tank of our vehicle.
  4. When we spend around 1,000 bucks to buy a branded shirt, we ensure that the color and pattern is of our choice, the size and fitting is appropriate and that we are fully satisfied.
  5. When we spend around 50,000 bucks on buying a new electronic gadget, we do our homework, we ensure that we research various brands, features, compatibility with our existing devices, etc and then we go ahead and ensure that we buy the right model of the correct brand after having seen a demo of the product itself.
  6. When we spend more than a few lakhs of our rupees on buying a new car, we do more extensive research, we take a test drive, we might even take our family members out on a test drive, we enquire which dealer provides the best after sales service, the best deals and then buy the car.

What was the point of this whole rambling above? The point that I was trying to make was that as the amount invested in a particular venture increases, our commitment to ensuring that it suits the original purpose increases manifold. As the amount increases, we take additional steps to ensure that all the money spent provides us with desired (or in some cases, better than desired) returns. Right…..

I still remember one of the earliest concepts that I was taught in Microeconomics was ‘caveat emptor’, a Latin term which literally translated means ‘let the buyer beware’. To put this term in layman language, and in plain English, it simply means that sellers and service providers are at liberty to pretty much sell anything they want, in whatever condition they want, and it is the buyers’ responsibility to ensure that the goods/services they purchase meet the conditions for which they are required for. The only exception to this principle is if the seller actively conceals any defects or faults in the good/service.

Why exactly am I giving the readers of this blog a lesson in basic microeconomics?

Because I came across this hilariously funny article (which I have every reason to believe is fact) where during the recently held IBL (Indian Badminton League) auctions, the bidders bid USD 46,000 for Pradnya Gadre whereas her more illustrious doubles partner, Ashwini Ponappa went for a price of USD 25,000. Why? Because the auction organizers made a mistake in their brochures and listed all of Ashwini Ponappa’s achievements under Pradnya. [Link to article]

While the organizers might have made a genuine mistake, my question was, what the hell were the bidders thinking about? Were they relying only on the organizers’ brochures for information regarding the players they were bidding for? Did they do any other homework at all before bidding? Do they even care about the game of badminton? Or are they participating in the IBL only because they foresee it to be the next big sports league of the country like the IPL? Just what the hell is going on…

It is a sad state of affairs when people who are willing to spend USD 46,000 have no clue as to the achievements of the player they are buying, and have also ended up buying the wrong player.

Wonder when sports other than cricket will get any kind of respect, attention, and the love of the paying public in this country…

Image courtesy: Google image search for ‘caveat emptor cartoons’