Quantity surcharges in online grocery stores in Mexico

In this article, we estimate that quantity surcharges -the large size has a higher per unit price than the small size- represent about 11% of the relevant products in Mexican on-line grocery stores. In addition, we use an empirical model to test several theories about the factors that cause this practice. Among other things, we find that quantity surcharges are more likely to occur in refrigerated goods and less likely in generic (store brand) goods.