Food Banks and Retail Markups

John D. Lowrey; Timothy J. Richards; Stephen F. Hamilton

doi:10.1093/erae/jbab047

Food Banks and Retail Markups

John D. Lowrey, Timothy J. Richards, Stephen F. Hamilton

Agribusiness, Morrison School of

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

Food banks play a critical part in the food distribution system. In this paper, we examine the impact of food bank donations on retailer markups using data on donations and store-level productivity. We frame our empirical model of food bank donations and store-level markups as an example of quality-based price discrimination and find that stores that donate more food to the local food bank are able to charge higher markups - 33% higher - after controlling for the well-known endogeneity problems. Our findings suggest that donations are not just charitable gestures by retailers but are in their own self-interests.

Original language	English (US)
Pages (from-to)	1027-1055
Number of pages	29
Journal	European Review of Agricultural Economics
Volume	49
Issue number	5
DOIs	https://doi.org/10.1093/erae/jbab047
State	Published - Dec 1 2022

Keywords

D43
food banks
food retailing
L13
M31
markups
price discrimination
production economics

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

Access to Document

10.1093/erae/jbab047

Cite this

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title = "Food Banks and Retail Markups",

abstract = "Food banks play a critical part in the food distribution system. In this paper, we examine the impact of food bank donations on retailer markups using data on donations and store-level productivity. We frame our empirical model of food bank donations and store-level markups as an example of quality-based price discrimination and find that stores that donate more food to the local food bank are able to charge higher markups - 33% higher - after controlling for the well-known endogeneity problems. Our findings suggest that donations are not just charitable gestures by retailers but are in their own self-interests.",

keywords = "D43, food banks, food retailing, L13, M31, markups, price discrimination, production economics",

author = "Lowrey, {John D.} and Richards, {Timothy J.} and Hamilton, {Stephen F.}",

note = "Funding Information: Funding from Agriculture and Food Research Initiative (National Institute for Food and Agriculture, United States Department of Agriculture (UDSA)) grant No. 2020-67021-31377 is gratefully acknowledged. All conclusions are those of the authors, and do not reflect USDA policy. Publisher Copyright: {\textcopyright} 2021 The Author(s). Published by Oxford University Press on behalf of the Foundation for the European Review of Agricultural Economics. All rights reserved.",

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AU - Lowrey, John D.

AU - Richards, Timothy J.

AU - Hamilton, Stephen F.

N1 - Funding Information: Funding from Agriculture and Food Research Initiative (National Institute for Food and Agriculture, United States Department of Agriculture (UDSA)) grant No. 2020-67021-31377 is gratefully acknowledged. All conclusions are those of the authors, and do not reflect USDA policy. Publisher Copyright: © 2021 The Author(s). Published by Oxford University Press on behalf of the Foundation for the European Review of Agricultural Economics. All rights reserved.

PY - 2022/12/1

Y1 - 2022/12/1

N2 - Food banks play a critical part in the food distribution system. In this paper, we examine the impact of food bank donations on retailer markups using data on donations and store-level productivity. We frame our empirical model of food bank donations and store-level markups as an example of quality-based price discrimination and find that stores that donate more food to the local food bank are able to charge higher markups - 33% higher - after controlling for the well-known endogeneity problems. Our findings suggest that donations are not just charitable gestures by retailers but are in their own self-interests.

AB - Food banks play a critical part in the food distribution system. In this paper, we examine the impact of food bank donations on retailer markups using data on donations and store-level productivity. We frame our empirical model of food bank donations and store-level markups as an example of quality-based price discrimination and find that stores that donate more food to the local food bank are able to charge higher markups - 33% higher - after controlling for the well-known endogeneity problems. Our findings suggest that donations are not just charitable gestures by retailers but are in their own self-interests.

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KW - food banks

KW - food retailing

KW - L13

KW - M31

KW - markups

KW - price discrimination

KW - production economics

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Food Banks and Retail Markups

Abstract

Keywords

ASJC Scopus subject areas

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