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Bokhari, Farasat 
ORCID: https://orcid.org/0000-0001-5418-8078, Dobson, Paul, Morciano, Marcello and Suhrcke, Marc
(2023)
Banning volume discounts to curb excessive consumption: A cautionary tale.
European Economic Review.
ISSN 0014-2921
Abstract
Volume discounts encourage consumers to buy more. Banning such discounts should then lead to consumers buying less. This is the thinking behind banning multiple-unit discounts, including multibuy price promotions, to curb excessive harmful consumption of alcohol and high-fat, -sugar, and -salt (HFSS) foods. However, our analysis questions the validity of this thinking, which ignores the possible restraining effect of volume discounts. We find that such a ban for retailing alcohol in Scotland increased rather than reduced sales. Retailers switched to using more straight (single-unit) discounts, which encouraged high-consumption households to increase their shopping frequency and buy more.
| Item Type: | Article |
|---|---|
| Faculty \ School: | Faculty of Social Sciences > School of Economics Faculty of Social Sciences > Norwich Business School |
| Depositing User: | LivePure Connector |
| Date Deposited: | 16 May 2023 08:31 |
| Last Modified: | 02 Jun 2023 14:30 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/92062 |
| DOI: | 10.1016/j.euroecorev.2023.104480 |
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