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An Economic Analysis Of Sizing Constraints: Price Discrimination And Changes In Welfare Under The New York City Soda Ban, Brian A. Bourquard

Open Access Theses

This thesis uses profit maximizing techniques and nonlinear, second-degree price discrimination theory to describe changes in consumption and gains and losses in welfare of consumption under a container size constraint. It observationally examines the New York City soda ban to provide insight into retailer behavior in the event of such a ban, and examines three cases to highlight potential retailer decisions to compensate for a ban: to continue using a restricted menu of pricing options; to sell only to high type soda consumers; or to serve both markets with a one-size-fits-all strategy. This thesis finds that the ban generally reduces …