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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
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    File URL: https://mpra.ub.uni-muenchen.de/20275/1/MPRA_paper_20275.pdf
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    References listed on IDEAS

    as
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    6. Frey, Bruno S. & Pommerehne, Werner W., 1993. "On the fairness of pricing -- An empirical survey among the general population," Journal of Economic Behavior & Organization, Elsevier, vol. 20(3), pages 295-307, April.
    7. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    8. Graafland, J.J., 2002. "Sourcing ethics in the textile sector: The case of C&A," MPRA Paper 20769, University Library of Munich, Germany.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hayuni, M & Lukman, Z.M. & Norshahira, O, 2023. "Management Practices and Perceived Training needs of Small Ruminant Farmers in Terengganu, Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 812-822, September.
    2. 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.
    3. Lim, Weng Marc, 2020. "An equity theory perspective of online group buying," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    4. 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.
    5. Campbell, Colin L. & Heinrich, Daniel & Schoenmüller, Verena, 2015. "Consumers' reaction to fair trade motivated price increases," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 79-84.
    6. 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.
    7. Rui Qi & Dan Jin & Han Chen & Xichen Mou & Faizan Ali, 2024. "Strategic-level perceived fairness of hotel dynamic pricing: the role of cues and the asymmetric moderating effect of inflation attribution," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(3), pages 249-261, June.
    8. Gedas Kucinskas & Indrė Pikturnienė, 2021. "Willingness to Buy Digital and Physical Books: Impact of Price Fairness Perceptions on Different Price Levels and Content of Books," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 33(SI), pages 29-46.
    9. Choongbeom Choi & Miyoung Jeong, 2020. "The Impact of Service Firm’s Environmentally Friendly Reputation in the Context of Revenue Management," IJERPH, MDPI, vol. 17(17), pages 1-12, August.
    10. 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.

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    More about this item

    Keywords

    Fair price; justice; fair trade; reference price;
    All these keywords.

    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 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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