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...

Firms do not typically disclose information on their costs to produce a good to consumers.However, we provide evidence of when and why doing so can increase consumers' purchase interest. Specifically, building on the psychology of disclosure and trust, we posit that cost transparency, insofar as...

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...