Comparative analysis of price changes fairness perception: Housing lease market in Russia and Israel

Abstract

Bargaining process is one of the major topics in management literature. Its result depends on different factors among which desire to finish a bargain, financial availability for both sides, transactional costs and communication effectiveness. It’s not a secret that price is one of the most important factors in bargaining processes. The results of previous researches on the topic show that perception of price fairness may affect results of a deal crucially especially for some industries. Communication process affects the perceived price fairness. The research is narrowed to different messages provided to another side on housing lease market of Russia and Israel as explanations for price increase. The results show the differences in attitude to these messages by both countries and both sides. The work investigates the concept of fair prices and its development, peculiarities of pricing on housing market. Results of Russian and Israeli researches are taken as a tool for development of international communication process.