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Retail Price Discrimination and Food Waste

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  • Richards, Timothy J.
  • Hamilton, Stephen F.

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.
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  • Richards, Timothy J. & Hamilton, Stephen F., 2019. "Retail Price Discrimination and Food Waste," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 290785, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea19:290785
    DOI: 10.22004/ag.econ.290785
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    Demand and Price Analysis;

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