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Identifying Food Labeling Effects on Consumer Behavior

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  • Sebastián Araya
  • Andres Elberg
  • Carlos Noton
  • Daniel Schwartz

Abstract

We take advantage of the gradual implementation of a comprehensive mandatory food labeling regulation introduced in Chile to identify its effects on consumer behavior. Using individual-level scandata from transactions in a big-box supermarket, we estimate a demand model for differentiated products in which a food label indicator captures the warning label effect. We find sizable effects on juices and cereals, but no impact on chocolates & candies and cookies. Our results are consistent with the information disclosure being effective only when information is unexpected. Key words:

Suggested Citation

  • Sebastián Araya & Andres Elberg & Carlos Noton & Daniel Schwartz, 2018. "Identifying Food Labeling Effects on Consumer Behavior," Documentos de Trabajo 339, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:339
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    2. Stortz, Laura & Lee, Yu Na & Von Massow, Michael, 2020. "Do Front-of-Package Warning Labels Reduce Demand for Foods ‘High In’ Saturated Fat, Sugar, or Sodium?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304581, Agricultural and Applied Economics Association.
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    5. Voraprapa Nakavachara & Chanon Thongtai & Thanarat Chalidabhongse & Chanathip Pharino, 2025. "Ethical Appetite: Consumer Preferences and Price Premiums for Animal Welfare-Friendly Food Products," Papers 2505.04042, arXiv.org.
    6. Martin, Gael M. & Frazier, David T. & Maneesoonthorn, Worapree & Loaiza-Maya, Rubén & Huber, Florian & Koop, Gary & Maheu, John & Nibbering, Didier & Panagiotelis, Anastasios, 2024. "Bayesian forecasting in economics and finance: A modern review," International Journal of Forecasting, Elsevier, vol. 40(2), pages 811-839.
    7. Nugraha, Widya Satya & Chen, Dennis & Yang, Shang-Ho, 2022. "The effect of a Halal label and label size on purchasing intent for non-Muslim consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    8. Benjamin Vatter, 2025. "Quality Disclosure and Regulation: Scoring Design in Medicare Advantage," Econometrica, Econometric Society, vol. 93(3), pages 959-1001, May.
    9. Paraje, Guillermo & Colchero, Arantxa & Wlasiuk, Juan Marcos & Sota, Antonio Martner & Popkin, Barry M., 2021. "The effects of the Chilean food policy package on aggregate employment and real wages," Food Policy, Elsevier, vol. 100(C).
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    11. Grace Melo & Laura Chomali & Ariun Ishdorj, 2024. "From sweet tooth to healthy choices: How Chilean food policies are changing household diets," Agribusiness, John Wiley & Sons, Ltd., vol. 40(3), pages 550-570, July.

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