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

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.



Citation:

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.

Authors

Mark Ratchford, University of Colorado, Boulder
Atanu Sinha, University of Colorado, Boulder



Volume

NA - Advances in Consumer Research Volume 35 | 2008



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