Is the Price Right? The Role of Economic Trade-Offs in Explaining Reactions to Price Surges.

This article examines public attitudes toward price surges and price controls through a large survey experiment involving 7,612 Canadian and U.S. respondents. It finds that while unregulated price increases provoke widespread moral disapproval—primarily due to concerns about fairness and consumer exploitation—acceptance of such surges significantly rises when participants are informed about the economic trade-offs, such as incentives for increased supply and improved product availability. Exposure to these trade-offs also reduces polarization in moral judgments between supporters and opponents of unregulated pricing. Despite this increased acceptance, a majority still favor price controls, indicating a persistent tension between utilitarian economic efficiency and the moral values held by the public. The study further demonstrates that these attitudes are stable over time and consistent with real-stakes behavior, highlighting the complex interplay between market dynamics, societal ethics, and public policy preferences.