Kahneman, D., Knetsch, J. L., &Thaler, R. (1986). Fairness as a constraint on profit seeking: Entitlements in the market. The American economic review,728-741.
Community standards of fairness for the setting of prices and wages were elicited by telephone surveys. In customer or labor markets, it is acceptable for a firm to raise prices (or cut wages) when profits are threatened and to maintain prices when costs diminish. It is unfair to exploit shifts in demand by raising prices or cutting wages. Several market anomalies are explained by assuming ...