Why wealth changes how we think about fair prices

When it comes to the price of financial services such as loans, mortgages, and insurance, the perception of what is "fair" has a lot to do with how wealthy you are. In the study "Seeing Like a Company or a Customer: Selective Empathy in Pricing," appearing in American Sociological Review, authors Barbara Kiviat (Columbia University) and Carly R. Knight (New York University) examine how Americans evaluate the fairness of risk-based pricing—where consumers who are predicted to be high-risk/costly are charged more.