Using extremeness aversion to fight obesity: Policy implications of context dependent demand


Journal Article

This article illustrates how the compromise effect alters consumers' selection of soft drinks. Using three within-subject studies, we show that extremeness aversion and price insensitivity cause consumers to increase their consumption when the smallest drink size Is dropped or when a larger drink size Is added to a set. As a result rational firms find It best to drop the smaller sizes and add a larger size, thus increasing overall consumption. After estimating each individual's demand as a function of price and drink size availability, policy experiments demonstrate how It Is possible to reduce soft drink consumption without additional taxation. © 2008 by JOURNAL OF CONSUMER RESEARCH, Inc.

Full Text

Duke Authors

Cited Authors

  • Sharpe, KM; Staelin, R; Huber, J

Published Date

  • October 1, 2008

Published In

Volume / Issue

  • 35 / 3

Start / End Page

  • 406 - 422

International Standard Serial Number (ISSN)

  • 0093-5301

Digital Object Identifier (DOI)

  • 10.1086/587631

Citation Source

  • Scopus