| Article Title: | You save money when you buy in bulk: Does volume-based pricing cause people to buy more beer? |
| Publication: | Health Economics |
| Type: | Journal Article |
| Date: | 2009 |
| Authors: | Bray, J.W., Loomis, B.R., Engelen, M. |
| Abstract: | This paper uses supermarket scanner data to estimate brand- and packaging-specific own- and cross-price elasticities for beer. We find that brand- and packaging-specific beer sales are highly price elastic. Cross-price elasticity estimates suggest that individuals are more likely to buy a higher-volume package of the same brand of beer than they are to switch brands. Policy simulations suggest that regulation of volume-based price discounts is potentially more effective than a tax increase at reducing beer consumption. Our results suggest that volume-based price discounting induces people to buy larger-volume packages of beer and may lead to an increased overall beer consumption. Copyright (c) 2008 John Wiley & Sons, Ltd.
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| Online Resources: | PubMed Citation |  External Link |
| Full Citation: | Bray, J.W., Loomis, B.R., & Engelen, M. (2009). You save money when you buy in bulk: Does volume-based pricing cause people to buy more beer? Health Economics, 18 (5):607-618. |
