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Food Banks and Retail Markups

Author

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  • John D Lowrey
  • Timothy J Richards
  • Stephen F Hamilton

Abstract

Food banks play a critical part in the food distribution system. In this paper, we examine the impact of food bank donations on retailer markups using data on donations and store-level productivity. We frame our empirical model of food bank donations and store-level markups as an example of quality-based price discrimination and find that stores that donate more food to the local food bank are able to charge higher markups—33% higher—after controlling for the well-known endogeneity problems. Our findings suggest that donations are not just charitable gestures by retailers but are in their own self-interests.

Suggested Citation

  • John D Lowrey & Timothy J Richards & Stephen F Hamilton, 2022. "Food Banks and Retail Markups," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(5), pages 1027-1055.
    • Handle: RePEc:oup:erevae:v:49:y:2022:i:5:p:1027-1055.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab047
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    Cited by:

    1. Lauren Chenarides & Miguel I. Gómez & Timothy J. Richards & Koichi Yonezawa, 2024. "Retail Markups and Discount-Store Entry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(1), pages 147-181, February.

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