Do Consumers Pay for Being Healthy Conscious?— An Analysis of Price Discrimination on Healthier Food Product

‘Healthier food product’ has experienced a rapid growth rate in recent years in U.S. because of the increasing consumer demand for healthier and environmental friendlier lifestyle. This analysis is looking for price discrimination evidences by comparing price cost margins of regular food products and healthier food products. Price cost margins are computed by solving firms' profit maximization problem and relevant parameters are estimated from consumers' choice decisions. Specifically, price elasticities and price coefficients are estimated using nonlinear GMM estimation in order to construct price cost margin. The empirical analysis employs product level ketchup data across 50 MSA in U.S. from 2001 to 2006.


Issue Date:
2010
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/60907
Total Pages:
20
Series Statement:
Selected Paper
10931




 Record created 2017-04-01, last modified 2018-01-22

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