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

Congnan Zhan

No 60907, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: ‘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.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Industrial Organization; Marketing (search for similar items in EconPapers)
Pages: 20
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:60907

DOI: 10.22004/ag.econ.60907

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