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To analyze several facets of oligopolistic conduct and market performance in the food system. To seek to understand strategic pricing and advertising, the management of advertising on kids, and its impact on obesity via possibly increased consumption of high fat and sweetened foods.
NON-TECHNICAL SUMMARY: This research will address major issues that effect food policy decisions in the following areas. The economics of obesity, antitrust enforcement in food markets, the development of agricultural pricing policies for milk and the implementation of firm based hazard programs to improve food safety. This reseaarch will provide new approches to the analysis of demand and will especially focus on the strategic impacts of advertising as well as pricing on the marketing of food products.<P>
APPROACH: Examine breakfast cereal, salty snacks, soft drinks, and candy brands to determine consumer's marginal evaluation of fat and calories by brand and food type. Conduct research on food advertising that analyzes the extent of informative versus persuasive advertising and its impacts. Analyze country of origin labeling and advertising. Dynamic models of retail milk pricing test for alternative pricing strategies in different market structures (competitive conditions) and address the nature of price cycles: period, amplitude, and asymmetry. A theoretical model explains lobbying and efforts to receive protection from import competition. It tests the model predictions using data from U.S. food industries.