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An Analysis of Portion Cap Rules with a Multiproduct Seller

Nuno‐Ledesma, Jose G.

American journal of agricultural economics, 2021-10, Vol.103 (5), p.1820-1831 [Periódico revisado por pares]

Boston, USA: Wiley Periodicals, Inc

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  • Título:
    An Analysis of Portion Cap Rules with a Multiproduct Seller
  • Autor: Nuno‐Ledesma, Jose G.
  • Assuntos: Bundling ; Buyers ; Consumption ; D82 ; Food industry ; I18 ; L51 ; multiple products ; nonlinear pricing ; Parameters ; portion cap rule ; product reformulation ; quantity restriction ; Retailing ; Valuation
  • É parte de: American journal of agricultural economics, 2021-10, Vol.103 (5), p.1820-1831
  • Notas: Jose G. Nuno‐Ledesma is an assistant professor at the University of Guelph, Guelph, Ontario. I benefited from comments by the journal's co‐editor, Timothy Richards; three anonymous reviewers; Steven Wu; Joseph Balagtas; Timothy Cason; Bhagyashree Katare; Guanming Shi; Gerald Shively; Alfons Weersink; and by participants in seminars held at the Center for Research and Teaching in Economics (CIDE), Purdue University, Indiana University, the Online Agricultural and Resource Economics Seminar (#OARES), and the 2018 annual meetings of the Agricultural & Applied Economics Association. All errors are my own. Financial support from USDA‐NIFA grant award no. 2014‐67023‐21852 is gratefully acknowledged.
  • Descrição: I study the impacts of limiting the quantity of one product in a two‐goods market with privately informed buyers. The goal is to explore effects on consumer surplus and consumption of both products. The main finding is that following moderate enough caps, a standard nonlinear pricing model predicts an increase in surplus for the buyer with low preference for the regulated good and high valuation for the unregulated product. Specific changes in allocation depend on the model's parameters. Consumption of the limited good is reduced, whereas consumption of the unregulated item often falls. Changes in screening are also interesting. Severe enough caps cause the seller to move from full separation to bunching some types. These results are applicable to food retail and other industries, where portion cap rules are a regulatory alternative and the impact on consumer surplus is an important consideration.
  • Editor: Boston, USA: Wiley Periodicals, Inc
  • Idioma: Inglês

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