Review of Behavioral Economics > Vol 11 > Issue 4

Cultural Impact on Attitudes Towards Price Changes and Income Inequality Policy—A Study with Language Priming Method

Yanping He-Ulbricht, University of Trier, Germany, s2yaheee@uni-trier.de , Marc Oliver Rieger, University of Trier, Germany, mrieger@uni-trier.de
 
Suggested Citation
Yanping He-Ulbricht and Marc Oliver Rieger (2024), "Cultural Impact on Attitudes Towards Price Changes and Income Inequality Policy—A Study with Language Priming Method", Review of Behavioral Economics: Vol. 11: No. 4, pp 495-518. http://dx.doi.org/10.1561/105.00000198

Publication Date: 16 Oct 2024
© 2024 Y. He-Ulbricht and M. O. Rieger
 
Subjects
Behavioral economics,  Experimental economics,  Psychology,  Government programs and public policy,  International business,  Consumer behavior,  Strategic decision-making,  Comparative political economy,  International political economy,  Political psychology
 
Keywords
JEL Codes: D90, F40
Bilingualismcross-cultural comparisoneconomic principleincome inequalitylanguage primingprice fairness
 

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In this article:
Introduction 
Hypotheses Development 
Survey and Samples 
Results 
Conclusion 
References 

Abstract

Based on data collected from two surveys conducted in Germany and Taiwan, this paper examines the impact of culture through language priming (Chinese vs. German or English) on individuals’ price fairness perception and attitudes towards government intervention and economic policy involving inequality. We document large cross-language differences: in both surveys, subjects who were asked and answered in Chinese demonstrated significantly higher perceived price fairness in a free market mechanism than their counterparts who completed the survey in German or English language. They were also more inclined to accept a Pareto improvement policy which increases social and economic inequality. In the second survey, Chinese language induced also a lower readiness to accept government intervention in markets with price limits compared to English language. Since language functions as a cultural mindset prime, our findings imply that culture plays an important role in fairness perception and preferences regarding social and economic inequality.

DOI:10.1561/105.00000198