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RETAIL DEMAND FOR WHOLE VS. LOW-FAT MILK: NEW PERSPECTIVES ON LOSS LEADER PRICING

Abstract

This analysis employed retail scanner data to investigate the demand for fluid mild differentiated by fat content. All own-price elasticities were significant and negative. Demand for low-fat milk was elastic, while demand for whole milk was inelastic. This article addresses the use of milk as a loss leader.Demand and Price Analysis, Research and Development/Tech Change/Emerging Technologies,

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