Fairness as a Constraint on Profit Seeking: Entitlements in the Market.

S-Tier
Journal: American Economic Review
Year: 1986
Volume: 76
Issue: 4
Pages: 728-41

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Community standards of fairness for the setting of prices and wages were elicited by telephone surveys. In customer or labor markets it isacceptable for a firm to raise prices (or cut wages) when profits arethreatened, and to maintain prices when costs diminish. It is unfair toexploit shifts in demand by raising prices or cutting wages. Several market anomalies are explained by assuming that these standards of fairness influence the behavior of firms. Copyright 1986 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:76:y:1986:i:4:p:728-41
Journal Field
General
Author Count
3
Added to Database
2026-01-25