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Journal Articles The Economic Journal Year : 2001

The demand for food products

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Abstract

In this paper we study household purchase behaviour of storable food products. An inventoly model is developed in which the household chooses an optimal stock level of the product. Storage of the product is costly, there is a fixed cost per purchase occasion, and the market price is sometimes discounted because of price promotions. We show that the optimal purchase policy is an s, S policy. The model is used to derive predictions on the correlations between interpurchase times and purchased quantities on the one hand, and prices on the other. These predictions are empirically verified using consumer panel data.
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Dates and versions

hal-03416605 , version 1 (05-11-2021)

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Christine Boizot, Jean-Marc Robin, Michael Visser. The demand for food products: An analysis of inter-purchase times and purchased quantities. The Economic Journal, 2001, 111 (470), pp.391 - 419. ⟨hal-03416605⟩
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