Fairness in Consumer Markets: Price Expectation, Cost Saliency, and Competition

Mark Ratchford, University of Colorado, Boulder
Atanu Sinha, University of Colorado, Boulder
This research attempts to provide new insights on price fairness. Findings suggest that a price increase due to a decrease (increase) in supply (demand) is fairer than a price increase due to an increase in consumer wealth. Second, perceptions of the fairness of a price change depend on whether the seller of the product is a retailer or an individual. Third, individuals expect to pay more than the price they deem to be fair. Lastly, given a wholesale price increase, a monopolist retailer’s price increase action is deemed fairer than that of a retailer facing competition.
[ to cite ]:
Mark Ratchford and Atanu Sinha (2008) ,"Fairness in Consumer Markets: Price Expectation, Cost Saliency, and Competition", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 937-937.