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| Avichai Snir, Daniel Levy, Dudi Levy and Haipeng Allan Chen |
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| ''Price Gauging or Market Forces? Fairness Perceptions of Price Hikes during the Pandemic'' |
| ( 2024, Vol. 44 No.4 ) |
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| 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' fairness 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 fair 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. |
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| Keywords: Dual Entitlement, Fairness Perceptions, Consumer Antagonism, COVID-19, Pandemic, Price Level, Price Adjustment, Price Increase, Price Rigidity, Sticky Prices |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
C9 - Design of Experiments: General |
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| Manuscript Received : Mar 14 2024 | | Manuscript Accepted : Dec 30 2024 |
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