Perceptions of price fairness: An empirical research
AbstractThis paper researches factors that influence price fairness judgements. The empirical literature suggests several factors: reference prices, the costs of the seller, a self-interest bias and the perceived motive of sellers. Using a Dutch sample, we find empirical evidence that these factors significantly affect perceptions of fair prices. In addition, we find that the perceived fairness of prices is also influenced by other distributional concerns that are independent of the transaction. In particular, price increases are judged to be fairer if they benefit poor people or small organisations rather than benefiting rich people or big organisations.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20275.
Date of creation: 2008
Date of revision:
Publication status: Published in Business & Society: A Journal of Interdisciplinary Exploration 47.3(2008): pp. 370-389
Fair price; justice; fair trade; reference price;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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