Do Fast-Food Chains Price Discriminate on the Race and Income Characteristics of an Area?

Kathryn Graddy ()

Journal of Business & Economic Statistics, 1997, vol. 15, issue 4, pages 391-401

Abstract: This article reports tests for differences in prices charged by fast-food restaurants that serve markets with customers of widely divergent incomes and ethnic backgrounds. The data contain detailed prices on items sold at over four hundred Burger King, Wendy's, KFC, and Roy Rogers restaurants in New Jersey and Pennsylvania locations. The author finds significant differences in price based on the race and income characteristics of a zip-code region. When income and cost differences are taken into account, meal prices rise approximately 5 percent for a 50 percent rise in the black population.

Date: 1997
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bes:jnlbes:v:15:y:1997:i:4:p:391-401

Ordering information: This journal article can be ordered from
http://www.amstat.org/publications/index.html

Access Statistics for this article

Journal of Business & Economic Statistics is edited by Arthur Lewbel and Serena Ng

More articles in Journal of Business & Economic Statistics from American Statistical Association
Series data maintained by Christopher F. Baum ().