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Abstract

Retail data are used in a hedonic pricing framework to estimate the premium paid for the “low-carbohydrate” attribute and other attributes of bread at grocery and non-grocery stores in a regional market. Results show that consumer willingness to pay is influenced by the “low-carbohydrate” attribute as well as by sugar, fiber, and fat content; serving size; and size of loaf. Implicit price premiums vary significantly by retail location. However, price differentials may be compounded by the absence of an acceptable definition for low-carbohydrate foods.

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