@article{Zhu:170016,
      recid = {170016},
      author = {Zhu, Chen and Huang, Rui},
      title = {Heterogeneity in Consumer Responses to Front-of-Package  Nutrition Labels: Evidence from a Natural Experiment?},
      address = {2014-05-16},
      number = {1584-2016-134071},
      series = {Working Paper series},
      pages = {36},
      month = {May},
      year = {2014},
      abstract = {We use a market-level natural experiment to evaluate how  the voluntary Facts Up Front style
Front-of-Package (FOP)  nutritional labeling system would affect consumer choices,  and whether
it can promote the consumption of healthier  food products. The new FOP system provides a
quick summary  of the calories, sugar, saturated fat, and selected  positive nutrients, and is listed
on the front of food  packages. Using data of household-level Ready-to-Eat cereal  (RTEC)
purchases and difference-in-differences (DD)  approaches, we find that the new FOP labels
induce  consumers to buy less RTEC, consume fewer calories, and  less sodium, but only in
households purchasing two RTEC  packages per month or fewer. For RTEC products  containing
new FOP labels, consumers are observed to  substitute more vigorously from products with  poor
nutritional quality to healthier RTEC products. We  also find that household heads with education
levels of a  high school degree or less show the greatest improvement in  their food choices,
suggesting that the FOP labels change  consumer behavior primarily through reduced  information
costs.},
      url = {http://ageconsearch.umn.edu/record/170016},
      doi = {https://doi.org/10.22004/ag.econ.170016},
}