Retail price discrimination and food waste

Timothy J Richards and Stephen Hamilton

European Review of Agricultural Economics, vol. 47, issue 5, 1861-1896

Abstract: We examine a food retailer’s incentive to use a minimum quality standard as part of a quality-based price-discrimination strategy and show how price discrimination can result in a substantial level of retail food waste. Using data from a major US food retailer, we estimate a structural model of retail price discrimination and conduct a series of counter-factual experiments to demonstrate that observed retail prices are consistent with quality-based price discrimination in the retail market. Our findings indicate that quality standards on fresh produce can explain a substantial proportion ($7.5\%$) of food waste by retailers in the US.

Keywords: retail prices; food retailing; food waste; price discrimination (search for similar items in EconPapers)
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Working Paper: Retail Price Discrimination and Food Waste (2019)
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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