Davis, David E. - Agricultural and Applied Economics Association - AAEA - 2011
Although the WIC food assistance program purchases over one-half of all US infant formula, I find the program has … little impact on the prices paid by non-WIC customers. I estimate infant-formula marginal cost and find that it is low … compared to price, implying large price-cost markups. But, the WIC program is not to blame. Instead large price-cost markups …