Obesity and Price Sensitivity at the Supermarket

In this paper, we employ a rich data set at the individual level in order to examine which factors are most highly correlated with obesity. Our main result is that, even after controlling for income levels and other factors, high “price-sensitivity” for food products is associated with high obesity rates. We find that a woman of average height who stated that prices were “not important at all” when purchasing food products had a weight circumference 4.5 centimeters (roughly 1.8 inches) smaller than those who stated that price was “very important.” We also show that this price effect is not limited to those with low income levels.