Shrinkflation

Evangelia Chalioti and Konstantinos Serfes

Economics Letters, 2024, vol. 244, issue C

Abstract: To maintain profitability amid rising costs, firms resort to shrinkflation, reducing product sizes. This paper shows that the presence of inattentive consumers lead to higher per-unit prices, especially in less competitive markets. Shrinkflation reduces consumer utility, necessitating regulatory action.

Keywords: Shrinkflation; Inattentive consumers; Product size (search for similar items in EconPapers)
JEL-codes: D11 D21 D43 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004439

DOI: 10.1016/j.econlet.2024.111959

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