Are Sugar-Sweetened Beverage Information Labels Well-Targeted: Evidence and Welfare Implications

Detailed Summary

We will study the extent to which soft drink information labels -- designed to curb unhealthy consumption -- are well-targeted to the most biased consumers.The study team will deploy novel methods for evaluating the targeting properties of information labels via an incentive-compatible online shopping experiment. At a high-level, we will ask whether the treatment effects of the information labels are concentrated on individuals with the biggest self-control problems and with the least knowledge of nutrition. We will first use the methodology from Allcott et al. (2019) to estimate the internality for each participant. We will then have participants make shopping decisions for soft drinks, first absent any information labels and then, for those not in the control group, in the presence of an information label. The within-subject design of the soft drinks experiment will allow us to estimate how the effects of the labels covary with consumers' internalities, and thus to determine whether the labels are well-targeted.

Study Details

Timeline

Interventions