Fairness of pricing decisions.

A study of the pricing policies of fast-food restaurants in predominantly black neighborhoods was conducted to test the hypothesis that a lack of monitoring of franchisees' pricing policies leads to higher prices. Findings indicate that franchisees are significantly more likely than outlets owned b...

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Detalles Bibliográficos
Publicado en:Business Ethics Quarterly Vol. 9; no. 2; pp. 225 - 244
Autores principales: Graddy, Kathryn, Robertson, Diana C.
Formato: Artículo
Publicado: Philosophy Documentation Center April 1999
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:A study of the pricing policies of fast-food restaurants in predominantly black neighborhoods was conducted to test the hypothesis that a lack of monitoring of franchisees' pricing policies leads to higher prices. Findings indicate that franchisees are significantly more likely than outlets owned by companies to charge higher prices based on the proportion of blacks in a neighborhood. Moreover, these price differences do not seem to be explained away by cost or competition factors. Even so, the findings do not establish an intent to discriminate on the part of franchisees.