The supply of demand can affect prices for items in the market, but will raising the price of a product cause future loses for the company? Both fairness and ethics are important to include in your decision making, even in business decisions. Fairness may dominate economically rational choices in our decisions, and is usually inconsistent with economic models. For example, if a store increases the price of snow shovels after a storm or a generator after a hurricane; the business that acts economically and rational may lose future business due to the fact many people will consider this act unfair. Stores that consider the norms of fairness will may have future profits because customers may punish retailers for perceived unfair decisions.
Fairness judgments seem to be affected by framing. For example, if a company making a small profit and is located in a community experiencing a recession and unemployment without inflation, yet cuts wages by 7%, about 62% of people polled thought this was unfair. However, a company with the same scenario, except they have 12% inflation and increase wages by 5%; only 22% thought this was unfair. We believe the rule of wages must go up not down. The money illusion tends to make us rely on nominal quantities instead of …show more content…
Unconscious attitudes effects our judgements and limits the degree that our behavior is representative of our ethical values. Many of us are surprised to learn we have little control over our attitudes regarding race, gender, age and so on. Implicit attitudes are rooted in ordinary mental processes of categorization, perception, memory, and judgment otherwise known as ordinary prejudice. Implicit attitudes are more likely to occur in System 1 thinking. As more members of stigmatized groups succeed in high status positions, the less prejudice society will
Fairness judgments seem to be affected by framing. For example, if a company making a small profit and is located in a community experiencing a recession and unemployment without inflation, yet cuts wages by 7%, about 62% of people polled thought this was unfair. However, a company with the same scenario, except they have 12% inflation and increase wages by 5%; only 22% thought this was unfair. We believe the rule of wages must go up not down. The money illusion tends to make us rely on nominal quantities instead of …show more content…
Unconscious attitudes effects our judgements and limits the degree that our behavior is representative of our ethical values. Many of us are surprised to learn we have little control over our attitudes regarding race, gender, age and so on. Implicit attitudes are rooted in ordinary mental processes of categorization, perception, memory, and judgment otherwise known as ordinary prejudice. Implicit attitudes are more likely to occur in System 1 thinking. As more members of stigmatized groups succeed in high status positions, the less prejudice society will