IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The Impact of Mandatory Disclosure Laws on Product Choices: An Analysis of the Salad Dressing Market

  • Mathios, Alan D

The Nutrition Labeling and Education Act (NLEA) requires most food products to include a nutrition label. Prior to the NLEA, labeling was voluntary. This study uses nutrition label information and supermarket scanner data pre- and post-NLEA to examine the impact of moving from a voluntary to a mandatory labeling regime on consumer product choice. The voluntary unraveling of information is shown to be an important market mechanism. Prior to the NLEA, all low-fat salad dressings had a nutrition label, while the majority of the higher fat dressings did not. However, there remained large variation in fat content among dressings that did not voluntarily label. Those with the highest fat levels experienced a significant decline in sales after they were required to disclose. The results indicate that even in markets with credible, low-cost mechanisms to disclose, mandatory labeling can have an impact on consumer behavior and health. Copyright 2000 by the University of Chicago.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dx.doi.org/10.1086/467468
Download Restriction: Access to the online full text or PDF requires a subscription.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by University of Chicago Press in its journal Journal of Law & Economics.

Volume (Year): 43 (2000)
Issue (Month): 2 (October)
Pages: 651-77

as
in new window

Handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:651-77
Contact details of provider: Web page: http://www.journals.uchicago.edu/JLE/

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-83, December.
  2. Steven Shavell, 1994. "Acquisition and Disclosure of Information Prior to Sale," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 20-36, Spring.
  3. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
  4. Moorman, Christine & Matulich, Erika, 1993. " A Model of Consumers' Preventive Health Behaviors: The Role of Health Motivation and Health Ability," Journal of Consumer Research, Oxford University Press, vol. 20(2), pages 208-28, September.
  5. Steven Matthews & Andrew Postlewaite, 1985. "Quality Testing and Disclosure," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 328-340, Autumn.
  6. Boyan Jovanovic, 1982. "Truthful Disclosure of Information," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 36-44, Spring.
  7. Julie A. Caswell, 1992. "Current Information Levels on Food Labels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1196-1201.
  8. Gould, Brian W. & Lin, Huei Chin, 1994. "Nutrition Information And Household Dietary Fat Intake," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
  9. Johnson, Richard D & Levin, Irwin P, 1985. " More than Meets the Eye: The Effect of Missing Information on Purchase Evaluations," Journal of Consumer Research, Oxford University Press, vol. 12(2), pages 169-77, September.
  10. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
  11. Cole, Catherine A & Balasubramanian, Siva K, 1993. " Age Differences in Consumers' Search for Information: Public Policy Implications," Journal of Consumer Research, Oxford University Press, vol. 20(1), pages 157-69, June.
  12. Moorman, Christine, 1990. " The Effects of Stimulus and Consumer Characteristics on the Utilization of Nutrition Information," Journal of Consumer Research, Oxford University Press, vol. 17(3), pages 362-74, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:651-77. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.