English to Portuguese Marketing Business/Commerce (general) Digital Marketing

Our analysis of consumer welfare reveals that small packages enhance consumer and social welfare, even though they sometimes increase the consumption of vice goods.

Consumers are often unable to resist the temptation of overconsuming certain products such as cookies, crackers, soft drinks, alcohol, etc. To control their consumption, some consumers buy small packages or abstain from purchasing the product altogether. Other consumers, however, still purchase large packages and overconsume. From a strategic perspective, firms have the option of introducing small packages or only offering large packages.