Estimating Price Premiums for Breads Marketed as “Low-Carbohydrate Breads”
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Retail data are used in a hedonic pricing framework to
estimate the premium paid for the “low-carbohydrate”
attribute and other attributes of bread at grocery and non-grocery
stores in a regional market. Results show that
consumer willingness to pay is influenced by the “low-carbohydrate”
attribute as well as by sugar, fiber, and
fat content; serving size; and size of loaf. Implicit price
premiums vary significantly by retail location. However,
price differentials may be compounded by the absence of
an acceptable definition for low-carbohydrate foods.