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Market Competition and the Health Composition of Manufactured Food

Hamilton, Stephen F. and Réquillart, Vincent (2017) Market Competition and the Health Composition of Manufactured Food. Health Economics, 26 (n°12). pp. 1637-1643.

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There has been surprisingly little research to date on the supply-side role of food manufacturers on equilibrium health outcomes for consumers. In this letter we consider an oligopoly model in which food processors choose the health composition of manufactured food. We show that price competition between food processors leads to unhealthy food composition in the market equilibrium, even under circumstances in which consumers know food composition is unhealthy. Taxes on manufactured food decrease the healthiness of manufactured foods whenever improved consumer health increases the price elasticity of food demand.

Item Type: Article
Language: English
Date: December 2017
Refereed: Yes
Uncontrolled Keywords: food design, consumer health, manufactured food, nutritional policies
JEL Classification: I18 - Government Policy; Regulation; Public Health
L13 - Oligopoly and Other Imperfect Markets
Q18 - Agricultural Policy; Food Policy
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 04 May 2017 08:15
Last Modified: 02 Apr 2021 15:55
OAI Identifier:

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