In a survey of consumers,Daniel Kahneman,Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to
A)go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
B)raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
C)sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
D)remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there no other hardware stores in the same area.

Question

Quizplus · Accepted Answer

The survey results show that 82% of consumers believe it is unfair for the store to raise prices on snow shovels after a snowstorm. This suggests that consumers have a strong aversion to price increases in response to changes in weather conditions, which may be viewed as price gouging.

In a Survey of Consumers,Daniel Kahneman,Jack Knetsch and Richard Thaler