Why do people think price fixing is unfair? An empirical legal study on public attitudes in the USA.

The article examines public attitudes toward price fixing within the framework of U.S. antitrust law, emphasizing how perceptions of fairness influence these attitudes. Using experimental surveys conducted on Amazon Mechanical Turk between 2018 and 2021, the study tests two hypotheses grounded in the dual entitlement theory, which posits that consumers judge price fixing as more unfair when prices rise above competitive levels and less unfair when price increases merely compensate for uncontrollable cost increases affecting firms’ profits. Results show that public disapproval of price fixing intensifies with price hikes that benefit firms at consumers’ expense, while price fixing aimed solely at maintaining prior profit levels amid external cost shocks is viewed more leniently. The research introduces the Price Fixing Attitude Scale (PFAS) to measure nuanced beliefs about price fixing and suggests that antitrust authorities should consider fairness perceptions in enforcement and compliance strategies to enhance legitimacy and effectiveness.