Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic

Avichai Snir; Daniel Levy; Dudi Levy; Haipeng Allan Chen

doi:10.48550/arxiv.2403.07617

Back

Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic

Preprint

Open access

Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic

Avichai Snir, Daniel Levy, Dudi Levy and Haipeng Allan Chen

arXiv.org

03/12/2024

DOI: 10.48550/arxiv.2403.07617

Files and links (1)

url

https://doi.org/10.48550/arXiv.2403.07617View

Preprint (Author's original)This preprint has not been evaluated by subject experts through peer review. Preprints may undergo extensive changes and/or become peer-reviewed journal articles. Open Access

Abstract

We report the results of surveys we conducted in the US and Israel in 2020, a time when many prices increased following the spread of the pandemic. To assess respondents perceptions of price increases, we focus on goods whose prices have increased during the pandemic, including some essential goods. Consistent with the principle of dual entitlement, we find that respondents perceive price increases as more acceptable if they are due to cost shocks than if they are due to demand shocks. However, we also find large differences across the two populations, as well as across goods.

Quantitative Finance - Economics

Details

Title: Subtitle: Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic
Creators: Avichai Snir
Daniel Levy
Dudi Levy
Haipeng Allan Chen
Resource Type: Preprint
Publication Details: arXiv.org
DOI: 10.48550/arxiv.2403.07617
eISSN: 2331-8422
Language: English
Date posted: 03/12/2024
Academic Unit: Marketing
Record Identifier: 9984618619402771

Metrics

7 Record Views