Fairness and short run price adjustment in posted offer markets

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dc.contributor.author Kujal, Praveen
dc.contributor.author Smith, Vernon
dc.date.accessioned 2006-11-09T11:31:45Z
dc.date.available 2006-11-09T11:31:45Z
dc.date.issued 2003-11
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/314
dc.description.abstract Questionnaire studies show that perceptions of fairness cause people to resist price increases following abrupt changes in conditions with no cost justification. We examine this hypothesis in posted-offer markets extending previous work. Consistent with the hypothesis, in the profit disclosure (fairness) treatment prices are initially below those in the cost and the no disclosure treatments. Over time prices converge in all treatments to the competitive surplus maximizing equilibrium. Fairness is thus interpreted as being a result of expectations that are not sustainable. Expectations adapt as the market converges to the predicted competitive equilibrium.
dc.format.extent 195076 bytes
dc.format.mimetype application/pdf
dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working Paper. Economics
dc.relation.ispartofseries 2003-24
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Fairness and short run price adjustment in posted offer markets
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we036024
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