Fast Food, Addiction, and Market Power

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Richards, Timothy J.; Patterson, Paul M.; Hamilton, Stephen F.;
(2007)
  • Subject: addiction, brand loyalty, fast food, generalized method of moments, hedonic pricing, nutrients, shadow values, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

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... View more
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