Fairness of Pricing Decisions

Business Ethics Quarterly 9 (2):225-243 (1999)
Abstract
Our research investigated pricing policies of fast-food restaurants in predominantly black neighborhoods. We argue that the lack of monitoring of franchisees’ pricing policies leads to higher prices. Results indicate that franchisees are significantly more likely than company-owned outlets to charge higher prices based on the proportion of blacks in a neighborhood. These price differences donot appear to be explained away by cost or competition factors. Our findings do not establish an intent to discriminate; nevertheless, wediscuss the fairness of the pricing structure found
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