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Product differentiation in food

In: A Modern Guide to Food Economics

Author

Listed:
  • Jill J. McCluskey
  • Jason A. Winfree

Abstract

In this chapter, we discuss the proliferation of food differentiation. Food is not only increasing in the amount of variety, but food is being differentiated on more dimensions. The chapter presents basic modelling approaches to vertical differentiation, horizontal differentiation, and double quality differentiation. We then discuss many of the types of food differentiation such as food safety, animal welfare, production technology, the location of production and different social identities associated with various foods. Food differentiation also has implications for market power since it can create new markets, but the effect on social welfare is not always obvious. We conclude with suggestions for directions for future research.

Suggested Citation

  • Jill J. McCluskey & Jason A. Winfree, 2022. "Product differentiation in food," Chapters, in: A Modern Guide to Food Economics, chapter 3, pages 47-61, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20022_3
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