processors-as both buyers in the raw milk market and sellers in the output market-has received little attention so far. Using a … advantage of their central position in the dairy supply chain, and buy milk from dairy farmers 9.2 percent below the value of … the marginal product and sell processed milk to retailers 1.1 percent above the marginal costs. We demonstrate that it is …

The milk addiction paradox refers to an empirical finding in which commodities that are typically considered to be non … addictive, such as milk, appear instead to be addictive. This result seems more likely when there is persistence in consumption … produce spurious result in favor of rational addiction. Using both simulated and real data, we show that the milk addiction …