Economies of scale, bulk discounts, and liquidity constraints: comparing unit value and transaction level evidence in a poor country

• Published in: Review of economics of the household Vol. 16; no. 1; pp. 21 - 39
• Main Authors: Gibson, John, Kim, Bonggeun
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.03.2018; Springer Nature B.V
• Subjects: Bias; Demand; Developing countries; Diaries; Discounts; Economic analysis; Economic models; Economics; Economics and Finance; Economies of scale; Elasticity; Expenditures; Fish; Fishing; Food; Food prices; Household expenditure; Household size; Households; Labor Economics; LDCs; Meat; Microeconomics; Population Economics; Rice; Social Sciences; Papua New Guinea; Prices; O15; D12; Consumer demand; Bulk discounts; I32; Unit values; Economies of size

We examine bulk discounts, which are claimed to explain the Deaton and Paxson puzzle about household size and food demand, and which may matter to household behavior studied in other literatures. Most previous studies use unit values, which are subject to several biases and reflect economizing choic...