IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/20275.html
   My bibliography  Save this paper

Perceptions of price fairness: An empirical research

Author

Listed:
  • Gielissen, R.
  • Dutilh, C.E.
  • Graafland, J.J.

Abstract

This 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.

Suggested Citation

  • Gielissen, R. & Dutilh, C.E. & Graafland, J.J., 2008. "Perceptions of price fairness: An empirical research," MPRA Paper 20275, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:20275
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/20275/1/MPRA_paper_20275.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Maxwell, Sarah, 2002. "Rule-based price fairness and its effect on willingness to purchase," Journal of Economic Psychology, Elsevier, vol. 23(2), pages 191-212, April.
    2. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    3. Graafland, J.J., 2002. "Sourcing ethics in the textile sector: The case of C&A," MPRA Paper 20769, University Library of Munich, Germany.
    4. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 97(4), pages 543-569.
    5. Dickson, Peter R. & Kalapurakal, Rosemary, 1994. "The use and perceived fairness of price-setting rules in the bulk electricity market," Journal of Economic Psychology, Elsevier, vol. 15(3), pages 427-448, September.
    6. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nur’Hidayah Che Ahmat & Salleh Mohd Radzi & Mohd Salehuddin Mohd Zahari & Rosmaliza Muhammad & Azdel Abdul Aziz & Nor Azmi Ahmad, 2011. "The Effect Of Factors Influencing The Perception Of Price Fairness Towards Customer Response Behaviors," Journal of Global Management, Global Research Agency, vol. 2(1), pages 22-38, July.
    2. Sandra Rothenberger, 2015. "Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness," Working Papers CEB 15-008, ULB -- Universite Libre de Bruxelles.
    3. repec:eee:joreco:v:24:y:2015:i:c:p:79-84 is not listed on IDEAS
    4. Nur’Hidayah Che Ahmat Author_Email: nurhidayahcheahmat@gmail.com & Salleh Mohd Radzi & Mohd Salehuddin Mohd Zahari & Rosmaliza Muhammad, 2011. "The Effect Of Factors Influencing The Perception Of Price Fairness Towards Customer Response Behaviors," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-169, Conference Master Resources.
    5. Pick, Doreén & Zielke, Stephan, 2015. "How electricity providers communicate price increases – A qualitative analysis of notification letters," Energy Policy, Elsevier, vol. 86(C), pages 303-314.

    More about this item

    Keywords

    Fair price; justice; fair trade; reference price;

    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, Pricing, and Design - - - Other
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20275. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.