Affiliation:
1. Department of Agricultural and Resource Economics The University of Tennessee Knoxville Tennessee USA
2. Department of Agricultural Economics and Agribusiness The University of Arkansas Fayetteville Arkansas USA
Abstract
AbstractIn 2022, U.S. consumers experienced an infant formula shortage that resulted in historic out‐of‐stock rates and brought renewed attention to market concentration in the infant formula market. FDA regulation, tariffs, and limiting WIC benefit redemption to a state's contract brand of infant formula, all potential barriers to competition, were temporarily relaxed to mitigate the impact of the shortage. This article discusses the potential trade‐offs associated with permanent policy changes while highlighting opportunities for future research to support the development of policies to improve resiliency in the infant formula market.
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