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...

Problem definition: We consider a monopolist firm selling products to strategic customers who may purchase more than one unit of the product. A key feature of multi-unit purchases is that customers do not value the additional purchases as highly as the first unit, implying the results of...