Fairness perceptions and observed consumer behavior: Results of a partial observability model

The present study aims at revealing the possible difference between thresholds of fairness and fairness evaluations. Thresholds of fairness are used to indicate the point at which a decision to shop becomes positive. Fairness evaluations refer to price fairness and service fairness judgments that the consumers make. Analysis indicates that fairness evaluations affect both the decision to shop and the decision regarding the monetary value of a specific transaction. Thus, threshold levels of fairness might be empirically approximated through the observed levels of expenditures. However, these thresholds do not necessarily coincide with consumers’ fairness perceptions.