Thesis - Open Access
Master of Science (MS)
WIC, Rebate Auctions, Infant formula, Alliances, market share, Sole source, Net prices, Wholesale price
This thesis investigates the factors that affect bid decisions of infant-formula manufacturers in WIC rebates auctions. Since its inception in 1972, the WIC program has served more than half of participating women and their infants each year. Today, Infant formula - the most expensive food item on the WIC menu - is accessible to all participants for free through the WIC rebate program. Through the rebate program, firms submit bids to solely supply their infant formula to a state WIC agency at a discount leading to fall in net prices. Yet, the firms in the infant formula market are selective in the auctions they submit bids for. This study investigated the factors that influence firm’s decisions to bid as such the role of state demographics and market share in such decisions using cross sectional data spanning from 1986 to 2016 for analysis. The major findings of research include state alliance membership and firm’s market share are a primary factor when it comes to bidding decisions.
Library of Congress Subject Headings
Infant formula industry -- United States.
Infant formulas -- Prices -- United States.
Special Supplemental Food Program for Women, Infants, and Children (U.S.)
Rebates -- United States.
Nutrition policy -- United States.
Includes bibliographical references (pages 56-57)
Number of Pages
South Dakota State University
In Copyright - Non-Commercial Use Permitted
Opoku, Raymond, "An Analysis of Factors Affecting Bid of Infant-formula Manufacturers in WIC Rebate Auctions" (2017). Electronic Theses and Dissertations. 2147.