Two Soft Drinks Sit Side-By-Side in a Grocery Store: a Six-Pack

question 299

Multiple Choice

Two soft drinks sit side-by-side in a grocery store: A six-pack of Coca-Cola (a brand name) sells for $3.00,while a six-pack of Uncle Don's cola (not a brand name) sells for $1.50.In a typical day the store sells some of each type of cola,which suggests that

• A) no rational consumer would spend twice as much for Coca-Cola as he would for Uncle Don's cola.
• B) some consumers must perceive that Coca-Cola is a higher quality product.
• C) Coca-Cola has no incentive to maintain the quality of its product just because of the Coca-Cola brand name.
• D) None of the above is correct.

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Definitions:

Outcome Fairness

The perception among individuals that the outcomes of a decision or process are just, equitable, and appropriate.

Outcome Fairness

The perception that the results of a decision or process are distributed equitably among stakeholders.

Procedural Justice

The fairness and transparency of the processes that lead to outcomes or decisions, impacting the perceived legitimacy and acceptance of those decisions.

Employment at Will

Employment principle that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.