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Can Voluntary Nutrition Labeling Lead to a Healthier Food Market?

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  • Liu, Xiaoou
  • Lopez, Rigoberto
  • Zhu, Chen

Abstract

This article reviews approaches to voluntary nutrition labeling (VNL), such as front-ofpackage (FOP) labels, that emerged in the 2001-2014 period to provide simplified nutrition information, thus lowering the search cost for nutritional information. We present a market model to assess consumer and producer responses to changes in information search cost brought about by VNL. We specifically focus on the introduction of VNL in the ready-toeat cereal (RTEC) market and illustrate trends in labeling and the overall healthfulness of RTEC products. Both the conceptual and empirical evidence suggest that VNL has been instrumental in attaining a healthier RTEC market. Finally, we suggest a research agenda to further theory development and empirical (experimental and big data) research to better comprehend the role of VNL in relation to market healthfulness.

Suggested Citation

  • Liu, Xiaoou & Lopez, Rigoberto & Zhu, Chen, 2015. "Can Voluntary Nutrition Labeling Lead to a Healthier Food Market?," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212818, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:assa16:212818
    DOI: 10.22004/ag.econ.212818
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    Food Consumption/Nutrition/Food Safety; Food Security and Poverty;

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