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Fast Food, Addiction, and Market Power AgEcon
Richards, Timothy J.; Patterson, Paul M.; Hamilton, Stephen F..
Many attribute the rise in obesity since the early 1980's to the overconsumption of fast food. A dynamic model of a different-product industry equilibrium shows that a firm with market power will price below marginal cost in a steady-state equilibrium. A spatial hedonic pricing model is used to test whether fast food firms set prices in order to exploit their inherent addictiveness. The results show that firms price products dense in addictive nutrients below marginal cost, but price products high in nonaddictive nutrients higher than would be the case in perfect competition.
Tipo: Journal Article Palavras-chave: Addiction; Brand loyalty; Fast food; Generalized method of moments; Hedonic pricing; Nutrients; Shadow values; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/7077
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Opportunity Costs of Providing Crop Diversity in Organic and Conventional Farming: Would Targeted Environmental Policies Make Economic Sense? AgEcon
Sipilainen, Timo; Huhtala, Anni.
Targeted environmental policies for farmlands may improve the cost-efficiency of conservation programs if one can identify the farms that produce public goods, or environmental outputs, with the least cost. We derive shadow values of producing crop diversity on conventional and organic crop farms to examine their opportunity costs of conservation. Non-parametric distance functions are estimated by applying data envelopment analysis to a sample of Finnish crop farms for the period 1994 – 2002. Our results show that there is variation in the shadow values between farms and the technologies adopted. The extent of cost heterogeneity and farms’ potential for specialization in the production of environmental outputs determine whether voluntary programs such as...
Tipo: Conference Paper or Presentation Palavras-chave: Biodiversity; Shannon index; DEA; Distance functions; Shadow values; Crop Production/Industries; Environmental Economics and Policy; C21; D24; H41; Q12; Q24.
Ano: 2011 URL: http://purl.umn.edu/114527
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