Identifying Food Labeling Effects on Consumer Behavior
25 Pages Posted: 1 Jul 2018
Date Written: June 13, 2018
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: Suggested Citation