PRICE IMAGES: A COMMENT1
| Date | 01 June 1969 |
| Published date | 01 June 1969 |
| Author | J. A. Stewart,H. M. Begg |
| DOI | http://doi.org/10.1111/j.1467-9485.1969.tb00032.x |
PRICE IMAGES:
A
COMMENT]
H.
M.
BEGG and
J.
A.
STEWART
IN
the course of her two articles
on
Price Images? Hilde Behrend
focuses much needed attention
on
one of the economic implications
of imperfect knowledge: that we react not in response to our real
interests but to our perceived interests. Specifically, the articles intro-
duce the concept
of
the price image and indicate the learning process
by which it is determined. Dr. Behrend suggests a crucial role for
price images in creating the climate of resentment that contributes
to
wage push inflation.
In
addition, she outlines a number of policy
recommendations designed
to
counteract the inflationary effects of
inaccurate price images.
I.
Criticise Dr. Behrend's method of enquiry.
11.
Test
Dr.
Behrend's findings using a different research design.
111.
Suggest the problems which inhibit future progress in
this
field.
IV.
Criticise
Dr.
Behrend's policy conclusions.
This paper sets out
to:
I
Dr. Behrend conducted two field enquiries
in
1963
and
1964,
covering
81
and
149
respondents respectively. Dr. Behrend nowhere
specifies her criteria for selection and admits that
'no
claim can be
made that the respondents formed a representative sample
'.3
How-
ever, there is
no
reason why a representative sample should not have
been taken
in
order to place
Dr.
Behrend's conclusions
on
a solid
statistical foundation.
Dr. Behrend divided her respondents into various groups.
In
one
important
respect,
she
contravened
accepted
interviewing
practice:
by
failing to present a uniform questionnaire to all respondents she placed
herself
in
grave danger
of
prejudging her conclusions.
We are deeply indebted
to
Mr. David Wishart, Dept. of Computing
Science, University
of
St.
Andrews, who analysed statistically the data col-
lected and made many constructive criticisms and suggestions
on
the draft
of
this paper.
We
are
indebted
to
Dr.
A.
J.
Cole for advice on sampling, Mr.
C.
D.
Sinclair for statistical advice and the Computing Laboratory
for
data
preparation and processing.
Hilde Behrend: Price and Income Images and Inflation
(S.J.P.E.,
June,
1964). Price Images, Inflation and National Incomes Policy
(S.J.P.E.,
Nov.,
1966).
3
1966 article,
p.
274.
84
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