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Fairness Concerns

In: Recent Advances in the Theory of Third-Degree Price Discrimination

Author

Listed:
  • Takanori Adachi

    (Kyoto University)

  • Ryo Hashizume

    (Hannan University)

  • Takeshi Ikeda

    (Daito Bunka University)

  • Tatsuhiko Nariu

    (Doshisha University)

  • Tomohisa Okada

    (Daito Bunka University)

Abstract

This chapter considers the unfairness that consumers feel against price discrimination and explains how such consumers’ fairness concerns lead firms to hesitate to engage in price discrimination. This finding encourages reconsidering the common view in the literature that firms always choose price discrimination over uniform pricing if price discrimination is feasible. This chapter also demonstrates that uncertainty about the impact based on consumers’ fairness concerns makes it more difficult for companies to engage in price discrimination via the unique information-revealing process on fairness concerns.

Suggested Citation

  • Takanori Adachi & Ryo Hashizume & Takeshi Ikeda & Tatsuhiko Nariu & Tomohisa Okada, 2023. "Fairness Concerns," SpringerBriefs in Economics, in: Recent Advances in the Theory of Third-Degree Price Discrimination, chapter 0, pages 43-59, Springer.
    • Handle: RePEc:spr:spbchp:978-981-99-3205-4_4
    DOI: 10.1007/978-981-99-3205-4_4
    as

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