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Abstract

Research examining the effect of summary shelf nutrition labels on consumers’ behavior in real market settings is scarce. Using a supermarket’s voluntary adoption of NuVal―a 1 to 100 numeric summary shelf label system―as a natural experiment, we estimate a Two-Part Model (TPM) to identify the effect of the NuVal label on consumer purchasing decisions for cold cereal. Our results show that posting the NuVal score not only increases the purchase volume of healthier cold cereal products but also increases households’ likelihood to purchase cold cereal products with higher nutrition scores. Tests for heterogeneous treatment effects reveal that lower-income households experience a large improvement in their food choices when the NuVal scores are posted.

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