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Prior research examining consumer expectations of equity and price fairness has not addressed wage fairness, as measured by a firm’s pay ratio. Pending legislation will require American public companies to disclose the pay ratio of CEO wage to the average employee’s wage. Our six studies...
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Two experiments, including one incentive compatible study, examine the impact of cutting pay for executives versus employees in response to COVID-19 on consumer behavior. Study 1 explores the effect of announcing cuts or no cuts to CEO and employee pay, and shows that firms’ commitment to...
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From “Chick Beer” to “Dryer sheets for Men,” identity-based labeling is frequently deployed to appeal to people who hold the targeted identity. However, five studies demonstrate that identity appeals can backfire, alienating the very individuals they aim to attract. We begin by...
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