Weight Gain: People Respond to Incentives

Posted in Econ, Health by George

Food Prices

Check out this graph. I haven’t checked out the underlying data, but based on everyday experience, I would say this graph is accurate. Not only is it more convenient to eat unhealthy food such as pre-packaged sweets, but it is less expensive as well. So, a rational person has two factors telling him to choose unhealthy food over healthy food. The question is, why is unhealthy food cheaper?

I do not have a personal underlying theory as to why unhealthy food is cheaper. The cynical person in me says this is because of lobbyists in the unhealthy food industries. The uncynical person says maybe it’s economies of scale of producing packaged foods, since they are more produced than grown and those costs are easier to bring down.

Regardless, this is interesting.

Hat Tip: Photo Basement







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