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2018 Documento de Trabajo #339

Identifying Food Labeling Effects on Consumer Behavior

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.

Sebastián Araya
Andres Elberg
Carlos Noton
Daniel Schwartz