Policy makers concerned with the increasing number of overweight consumers have long complained about the pricing of

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Policy makers concerned with the increasing number of overweight consumers have long complained about the pricing of sodas at fast food restaurants. In most cases, a small soda (usually around 16 ounces) sells for a couple dollars. For just a few cents more, one could purchase a drink that was double that size and obtain a much better deal. Why would fast food chains offer such steep discounts on larger sodas? In one extreme case, a major fast food chain has offered all sizes of drinks for the same price. How could this be profitable? Policymakers have suggested requiring linear pricing (eliminating discounts for larger amounts) to fight obesity. New York also attempted to ban the sale of large soft drinks. Are these policies likely to be effective?
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