The Impact of Prescription Drug Black Box Warnings on College Students’ Risk Perceptions and Information Processing

32 Pages Posted: 27 Feb 2010

Date Written: February 26, 2010

Abstract

The Food and Drug Administration’s application of black box warnings to several high profile medications has heightened the attention surrounding the risks of prescription drugs and the role of warning labels. Previous research indicates that the issuance of a black box warning to a prescription drug is often followed by a significant decline in the drug’s sales, raising concerns that some consumers overreact and may fail to use an otherwise appropriate medication. Using a lab experiment with college students (n=279), this study examines consumer responses to the presence of a black box warning relevant for this population. The results indicate that the presence of a black box warning significantly increases the consumer’s awareness of the risks of taking the drug but has no effect on the consumer’s hypothetical willingness to begin taking the drug.

Keywords: Product Disclosure, Risk Perception

JEL Classification: D12, D18, I18, D83, D10

Suggested Citation

Collins, J. Michael and Schmeiser, Maximilian D., The Impact of Prescription Drug Black Box Warnings on College Students’ Risk Perceptions and Information Processing (February 26, 2010). Available at SSRN: https://ssrn.com/abstract=1559957 or http://dx.doi.org/10.2139/ssrn.1559957

J. Michael Collins (Contact Author)

University of Wisconsin - Madison ( email )

United States
6086160369 (Phone)

Maximilian D. Schmeiser

Amazon Lending ( email )

Seattle, WA 98144
United States

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