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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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    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2018/IFRO_WP_2018_09.pdf
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    References listed on IDEAS

    as
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    5. Conrads, Julian & Irlenbusch, Bernd, 2013. "Strategic ignorance in ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 104-115.
    6. 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.
    7. 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.
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    16. 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.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    strategic ignorance; willful ignorance; risk perception; optimal expectations; calories; information.;
    All these keywords.

    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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