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Abstract

In response to the Food and Drug Administration (FDA) proposed rules for national menu labeling, several studies have examined the effect of restaurant menu labeling on consumers food choices and total calorie intake. However, outcomes other than nutritional and health concerns were not given enough attention. An important component that can be affected by menu labeling is the total cost/price paid by consumer for a selected meal. In this study, samples of 242 participants with diverse demographic characteristics were presented with two different restaurant menus. For each menu, we construct different experimental treatments associated with calorie information display formats (total calories, percentage daily intake and traffic lights) and we ask participants to make their meal choice(s). Data on price and calorie information for chosen food items is then recorded. Therefore, we examine how prices paid by consumers are affected by a change of calorie labeling formats for each menu. Results of this analysis are critical to restaurants owners and may have a significant impact on their pricing decisions.

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