3:30 pm - 5:00 pm
GSB 550, 116 st 89 ave, 515 general ser, edmonton Alberta
Title: Soda Taxes versus Cup Sizes when the Retailer Practices Nonlinear Pricing: An Experiment
Speaker: Dr. José Nuño-Ledesma, Assistant Professor, University of Guelph
Date: Friday, February 7, 2025
Time: 3:30pm-5:00pm
Location: GSB 550
Abstract:
Taxation and portion cap rules are alternative policies available to regulate consumption of sugary drinks. We report an experiment examining their impacts on consumer surplus and number of choices available in a market where sellers could segment demand. Single-product sellers interacted with automated buyers with either low or high preference. In the environment subjected to a quantity limit, sellers provided two options as frequently as in the control. With a tax, their pricing strategy excluded low-type buyers. Consumer surplus remained unaffected under the cap but was diminished under taxation. We conclude that taxation is not superior to quantity limits when consumer welfare and product availability are of primary concern.
Bio:
José Nuño-Ledesma is an Assistant Professor at the University of Guelph. His research centers on pricing, industrial organization, contract theory, and labour economics as they apply to the agri-food industry. José holds a PhD in Agricultural Economics from Purdue University and a master’s degree in Applied Economics from the University of Minnesota, earned as a Fulbright Scholar.
José has published in leading journals, including the American Journal of Agricultural Economics and the Canadian Journal of Agricultural Economics, where he currently serves as Guest Editor. With teaching experience in both the United States and Canada, he has taught courses on supply chain management, the economics of food markets, environmental economics, and macroeconomics. Before entering academia, José worked as an economist and specialist leader at the Mexican Central Bank.
Categories: