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Journal of Agricultural and Resource Economics >
Volume 32, Number 03, December 2007 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/7077
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| Title: | Fast Food, Addiction, and Market Power |
| Authors: | Richards, Timothy J.
Patterson, Paul M.
Hamilton, Stephen F. |
| Keywords: | addiction
brand loyalty
fast food
generalized method of moments
hedonic pricing
nutrients
shadow values |
| Issue Date: | 2007-12 |
| Abstract: | Many attribute the rise in obesity since the early 1980's to the overconsumption of fast food. A dynamic model of a different-product industry equilibrium shows that a firm with market power will price below marginal cost in a steady-state equilibrium. A spatial hedonic pricing model is used to test whether fast food firms set prices in order to exploit their inherent addictiveness. The results show that firms price products dense in addictive nutrients below marginal cost, but price products high in nonaddictive nutrients higher than would be the case in perfect competition. |
| URI: | http://purl.umn.edu/7077 |
| Institution/Association: | Journal of Agricultural and Resource Economics>Volume 32, Number 03, December 2007 |
| Total Pages: | 23 |
| From Page: | 425 |
| To Page: | 447 |
| Collections: | Volume 32, Number 03, December 2007
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| 32030425.pdf | | 8987Kb | PDF | View/Open |
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