Price fairness: square equity and mean pricing

Abstract Prices have a leverage effect on firm profits. Prices, however, also an impact customer’s perceived price fairness and thus indirectly firm’s bottom line. A growing body of literature shows this. Papers the level fair price, are rather scarce. Based different concepts justice, two levels prices proposed: square equity mean prices. I run experiment which that both considered fairer than cost-based or value-based The results can be used to assess implications ex ante hence complement traditional pricing approaches.