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A Wicked Problem? Cost Containment in the Women, Infants and Children Program

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  • Tina L. Saitone
  • Richard J. Sexton
  • Richard J. Volpe

Abstract

The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) Program is a key part of America's safety net, but its structure fails to incentivize participants to be cost-conscious in their purchases and may cause retailers to attach excessive markups to WIC products. We investigate cost containment in the WIC Program, with a focus on California. Results show that smaller vendors often charge considerably higher prices for WIC foods than their larger counterparts. However, larger vendors do not mark up WIC foods more or promote them less than comparable control products. Cost containment can be improved by targeting WIC Program sales to larger vendors when it is possible to do so without compromising participant access, and using large-vendor prices as a benchmark to limit prices set by smaller vendors.

Suggested Citation

  • Tina L. Saitone & Richard J. Sexton & Richard J. Volpe, 2015. "A Wicked Problem? Cost Containment in the Women, Infants and Children Program," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 378-402.
    • Handle: RePEc:oup:apecpp:v:37:y:2015:i:3:p:378-402.
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    Cited by:

    1. McLaughlin, Patrick W. & Saksena, Michelle & Saitone, Tina L. & Ma, Meilin & Volpe, Richard & Wu, Qi & Sexton, Richard J., 2021. "Cost Containment and Participant Access in USDA's Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Evidence from the Greater Los Angeles, CA, Area," USDA Miscellaneous 309614, United States Department of Agriculture.
    2. Meilin Ma & Tina L Saitone & Richard J Volpe & Richard J Sexton & Michelle Saksena & Craig GundersenEditor, 2019. "Market Concentration, Market Shares, and Retail Food Prices: Evidence from the U.S. Women, Infants, and Children Program," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 542-562.
    3. Katherine Meckel, 2020. "Is the Cure Worse Than the Disease? Unintended Effects of Payment Reform in a Quantity-Based Transfer Program," American Economic Review, American Economic Association, vol. 110(6), pages 1821-1865, June.
    4. McLaughlin, Patrick W & Saksena, Michelle & Saitone, Tina L & Ma, Meilin & Volpe, Richard & Wu, Qi & Sexton, Richard J, 2021. "Cost Containment and Participant Access in USDA's Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Evidence from the Greater Los Angeles, CA, Area," Economic Research Report 327202, United States Department of Agriculture, Economic Research Service.
    5. Volpe, Richard J. & Cho, Clare, 2017. "Market Structure Determinants of Performance for Independent Supermarkets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258546, Agricultural and Applied Economics Association.
    6. Wu, Qi & Saitone, Tina L. & Sexton, Richard J., 2016. "Food Access, Food Deserts, and the Women, Infants, and Children Program," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236263, Agricultural and Applied Economics Association.
    7. Li, Xuemei & Saitone, Tina L. & Sexton, Richard J., 2022. "Impacts of Electronic Benefit Transfer on the Women, Infants and Children Program: Evidence from Oklahoma," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    8. Qi Zhang & Chuanyi Tang & Patrick W. McLaughlin & Leigh Diggs, 2017. "Individual and Store Characteristics Associated with Brand Choices in Select Food Category Redemptions among WIC Participants in Virginia," IJERPH, MDPI, vol. 14(4), pages 1-10, March.
    9. Meilin Ma & Tina L. Saitone & Richard J. Volpe & Richard J. Sexton & Michelle Saksena, 2019. "Market Concentration, Market Shares, and Retail Food Prices: Evidence from the U.S. Women, Infants, and Children Program," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 542-562, September.

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