International Price Competition Among Food Industries: The Role of Income, Population, and Biased Consumer Preference

  • Madoka OkimotoEmail author
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 10)


Sensitivity to prices among poor citizens means that a hike in food prices, as a burden on consumers, hinders the adequate supply of inexpensive food and worsens food safety problems caused by low-priced food. This chapter theoretically studies the impact of economic growth with demographic transitions and food safety on food prices, providing a background for policies to protect consumers. The results imply that the sources of food price hikes are (a) economic growth, (b) population growth accompanied by an expansion in the income gap, (c) remarkable population growth in the past, and (d) deterioration in the safety of foods made in the South. In the North, (d) is the most important factor; additionally, (a) and (b) in the South would affect global food prices, while food price hikes are inseparable from economic advancement in the South. Accordingly, guaranteeing the food safety of Southern foods leads to stable food prices in the North, whereas as long as economic advancement in the South continues, encouraging policies that artificially promote stable food prices and ensure food safety will be needed for both developing and developed countries.


Food security Food price hike Price competition Income distribution Population growth Bounded rationality 



This chapter has been published in Economic Modeling. I appreciate that Elsevier gave me permission to reprint it in our volume. Okimoto gratefully acknowledges the editors (Sushanta Mallick and Stephen George Hall), anonymous referees, Makoto Tawada (Aichi-Gakuin University), Akihiko Yanase (Nagoya University), Mitsuyoshi Yanagihara (Nagoya University), Hikaru Ogawa (University of Tokyo), Nobuyoshi Yamori (Kobe University), and the financial support of a Grant-in-Aid for JSPS Fellows #23-3981 from JSPS.


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Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.University of ShizuokaShizuokaJapan

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