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

Avichai Snir (), Daniel Levy (), Dudi Levy () and Haipeng Allan Chen ()
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Avichai Snir: Department of Economics, Bar-Ilan University, Israel
Dudi Levy: Department of Economics, Bar-Ilan University, Israel
Haipeng Allan Chen: Tippie College of Business, University of Iowa, USA

Working Paper series from Rimini Centre for Economic Analysis

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 COVID-19 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.

Keywords: Fairness Perceptions; Price Increases; The Pandemic; Dual Entitlement; Consumer Antagonism (search for similar items in EconPapers)
JEL-codes: D90 E31 E70 M31 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-mon and nep-reg
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http://rcea.org/RePEc/pdf/wp24-03.pdf

Related works:
Working Paper: Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic (2024)
Working Paper: Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic (2024)
Working Paper: Price Gouging or Market Forces? Fairness Perceptions of Price Hikes in the Pandemic (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:24-03

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