Identifying Food Labeling Effects on Consumer Behavior

25 Pages Posted: 1 Jul 2018

See all articles by Sebastian Araya

Sebastian Araya

University of Chile - Center of Applied Economics (CEA)

Andres Elberg

Pontificia Universidad Católica de Chile - School of Management

Carlos Noton

Dept of Industrial Engineering - University of Chile

Daniel Schwartz

University of Chile

Date Written: June 13, 2018

Abstract

We take advantage of the gradual implementation of a comprehensive mandatory food labeling regulation introduced in Chile to identify its effects on consumer behavior. Using individual-level scandata from transactions in a big-box supermarket, we estimate a demand model for differentiated products in which a food label indicator captures the warning label effect. We find sizable effects on juices and cereals, but no impact on chocolates & candies and cookies. Our results are consistent with the information disclosure being effective only when information is unexpected.

Keywords: Food Labeling, Obesity, Public Policy, Consumer Behavior, Food Information

JEL Classification: D12, I12, I18

Suggested Citation

Araya, Sebastian and Elberg, Andres and Noton, Carlos and Schwartz, Daniel, Identifying Food Labeling Effects on Consumer Behavior (June 13, 2018). Available at SSRN: https://ssrn.com/abstract=3195500 or http://dx.doi.org/10.2139/ssrn.3195500

Sebastian Araya

University of Chile - Center of Applied Economics (CEA) ( email )

Republica 701
Casilla 2777
Santiago
Chile

Andres Elberg

Pontificia Universidad Católica de Chile - School of Management ( email )

Av. Vicuña Mackenna 4860
Santiago, RM 7820436
Chile

Carlos Noton (Contact Author)

Dept of Industrial Engineering - University of Chile ( email )

Beauchef 851
Santiago, RM
Chile

HOME PAGE: http://www.dii.uchile.cl/~cnoton/

Daniel Schwartz

University of Chile ( email )

Beauchef 851
Santiago, R. Metropolitana
Chile

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