Working Paper: NBER ID: w24889
Authors: John Cawley; Alex Susskind; Barton Willage
Abstract: The impact of information on consumer behavior is a classic topic in economics, and there has recently been particular interest in whether providing nutritional information leads consumers to choose healthier diets. For example, a nationwide requirement of calorie counts on the menus of chain restaurants took effect in the U.S. in May, 2018, and the results of such information disclosure are not well known.\nTo estimate the impact of menu labeling, we conducted a randomized controlled field experiment in two full-service restaurants, in which the control group received the usual menus and the treatment group received the same menus but with calorie counts. We estimate that the labels resulted in a 3.0% reduction in calories ordered, with the reduction occurring in appetizers and entrees but not drinks or desserts. Exposure to the information also increases consumers’ support for requiring calorie labels by 9.6%. These results are informative about the impact of the new nationwide menu label requirement, and more generally contribute to the literature on the impact of information disclosure on consumer behavior.
Keywords: calorie labeling; consumer behavior; randomized controlled trial; public health
JEL Codes: D8; I12; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Calorie labels (D18) | Reduction in calories ordered (C69) |
| Calorie labels (D18) | Reduction in calories ordered for appetizers (D91) |
| Calorie labels (D18) | Reduction in calories ordered for entrées (D12) |
| Calorie labels (D18) | Increase in support for calorie labeling policies (D18) |
| Calorie labels (D18) | Healthier ordering decisions (D91) |
| Recent dieting (I12) | Reduction in calories ordered as appetizers when exposed to calorie labels (D18) |