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Strategic Ignorance of Health Risk: Its Causes and Policy Consequences

Author

Listed:
  • Jonas Nordström

    (Department of Food and Resource Economics, University of Copenhagen
    Lund University School of Economics and Management)

  • Linda Thunström

    (Department of Economics, University of Wyoming)

  • Klaas van ’t Veld

    (Department of Economics, University of Wyoming)

  • Jason F. Shogren

    (Department of Economics, University of Wyoming)

  • Mariah Ehmke

    (Department of Agricultural and Applied Economics, University of Wyoming)

Abstract

We examine the causes and policy consequences of strategic (willful) ignorance of risk as an excuse to overengage in risky health behavior. In an experiment on Copenhagen adults, we allow subjects to choose whether to learn the calorie content of a meal before consuming it, and measure their subsequent calorie intake. We find strong evidence of strategic ignorance: 46% of subjects choose to ignore calorie information, and these subjects subsequently consume more calories on average than they would have had they been informed. We find that strategically ignorant subjects downplay the health risk of their preferred meal being high-calorie, which we formally show is consistent with the theory of optimal expectations about risk. Further, we find that the prevalence of strategic ignorance largely negates the effectiveness of calorie information provision: on average, subjects who have the option to ignore calorie information consume about the same number of calories as subjects who are provided no information.

Suggested Citation

  • Jonas Nordström & Linda Thunström & Klaas van ’t Veld & Jason F. Shogren & Mariah Ehmke, 2018. "Strategic Ignorance of Health Risk: Its Causes and Policy Consequences," IFRO Working Paper 2018/09, University of Copenhagen, Department of Food and Resource Economics.
    • Handle: RePEc:foi:wpaper:2018_09
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    References listed on IDEAS

    as
    1. Linda Thunström & Klaas van ’t Veld & Jason F. Shogren & Jonas Nordström, 2014. "On strategic ignorance of environmental harm and social norms," Revue d'économie politique, Dalloz, vol. 124(2), pages 195-214.
    2. Burton, S. & Creyer, E.H. & Kees, J. & Huggins, K., 2006. "Attacking the obesity epidemic: The potential health benefits of providing nutrition information in restaurants," American Journal of Public Health, American Public Health Association, vol. 96(9), pages 1669-1675.
    3. Zachary Grossman & Joël J. van der Weele, 2017. "Self-Image and Willful Ignorance in Social Decisions," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 173-217.
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    6. Johansson-Stenman, Olof, 2008. "Mad cows, terrorism and junk food: Should public policy reflect perceived or objective risks?," Journal of Health Economics, Elsevier, vol. 27(2), pages 234-248, March.
    7. Julie S. Downs & George Loewenstein & Jessica Wisdom, 2009. "Strategies for Promoting Healthier Food Choices," American Economic Review, American Economic Association, vol. 99(2), pages 159-164, May.
    8. Hoel, Michael & Iversen, Tor & Nilssen, Tore & Vislie, Jon, 2006. "Genetic testing in competitive insurance markets with repulsion from chance: A welfare analysis," Journal of Health Economics, Elsevier, vol. 25(5), pages 847-860, September.
    9. Feiler, Lauren, 2014. "Testing models of information avoidance with binary choice dictator games," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 253-267.
    10. Conrads, Julian & Irlenbusch, Bernd, 2013. "Strategic ignorance in ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 104-115.
    11. Markus K. Brunnermeier & Jonathan A. Parker, 2005. "Optimal Expectations," American Economic Review, American Economic Association, vol. 95(4), pages 1092-1118, September.
    12. Bryan Bollinger & Phillip Leslie & Alan Sorensen, 2011. "Calorie Posting in Chain Restaurants," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 91-128, February.
    13. Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Monash Economics Working Papers archive-01, Monash University, Department of Economics.
    14. Zachary Grossman, 2014. "Strategic Ignorance and the Robustness of Social Preferences," Management Science, INFORMS, vol. 60(11), pages 2659-2665, November.
    15. Andrew Caplin & John Leahy, 2001. "Psychological Expected Utility Theory and Anticipatory Feelings," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 55-79.
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    17. Linda Thunström & Jonas Nordström & Jason F. Shogren & Mariah Ehmke & Klaas Veld, 2016. "Strategic self-ignorance," Journal of Risk and Uncertainty, Springer, vol. 52(2), pages 117-136, April.
    18. Russell Golman & David Hagmann & George Loewenstein, 2017. "Information Avoidance," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 96-135, March.
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    Cited by:

    1. Therese Cavlovic & Brandon C. Koford & Lucas Rentschler, 2024. "Information avoidance: An experimental test of anticipated regret," Journal of Risk and Uncertainty, Springer, vol. 69(3), pages 323-348, December.
    2. Droz, Bénédicte & Buechel, Berno & Capra, Mónica & Chen, Xi & Nassar, Anis & Park, Seong Gyu & Xu, Jin & Zhang, Shanshan & Tasoff, Joshua, 2025. "Appetite for Ignorance: Does eating meat cause information avoidance about its harms?," European Economic Review, Elsevier, vol. 175(C).
    3. Edenbrandt, Anna Kristina & Lagerkvist, Carl Johan & Nordström, Jonas, 2020. "Interested, indifferent or active information avoider of climate labels: Cognitive dissonance and ascription of responsibility as motivating factors," AgriFood-WP 2020:1, Lund University, AgriFood Economics Centre.
    4. Gustafson, Christopher R. & Champetier, Antoine, 2024. "Information Choice vs. Exposure: An Experiment Examining the Impact of Honey Fraud Information on Consumer Valuation," 2024 Annual Meeting, July 28-30, New Orleans, LA 343750, Agricultural and Applied Economics Association.
    5. Capitán, Tabaré & Thunstrom, Linda & van 't Veld, Klaas & Nordström, Jonas & Shogren, Jason F., 2024. "Show me the labels: Using pre-nudges to reduce calorie information avoidance," SocArXiv vy6af, Center for Open Science.
    6. Priestley, Samuel L. & Ganguly, Diya & Palma, Marco A. & Messer, Kent D., 2024. "Consumer Avoidance of Potentially Negative Information about Food," 2024 Annual Meeting, July 28-30, New Orleans, LA 343948, Agricultural and Applied Economics Association.
    7. repec:osf:socarx:vy6af_v1 is not listed on IDEAS

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    Keywords

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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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