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Retail price discrimination and food waste

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  • Timothy J Richards
  • Stephen F Hamilton

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.

Suggested Citation

  • Timothy J Richards & Stephen F Hamilton, 0. "Retail price discrimination and food waste," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(5), pages 1861-1896.
    • Handle: RePEc:oup:erevae:v:47:y::i:5:p:1861-1896.
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    File URL: http://hdl.handle.net/10.1093/eurrag/jbaa012
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