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Consumer and Strategic Firm Response to Nutrition Shelf Labels
American Journal of Agricultural Economics ( IF 4.2 ) Pub Date : 2020-01-23 , DOI: 10.1002/ajae.12002
Sofia B. Villas‐Boas , Kristin Kiesel , Joshua P. Berning , Hayley H. Chouinard , Jill J. McCluskey

The display of nutrition facts is mandatory on virtually all packaged foods sold in the United States. Yet manufacturers and retailers add their own claims to differentiate their products and capture consumers' attention at point of sale. We implement experimental nutrition claims on shelf labels in a retail setting and test how consumers react to the display of these labels that express information reported on the Nutrition Facts Panel in a different format. We hypothesize that our labels either shift demand for the highlighted healthier products uniformly or trigger more complex demand rotations. Our estimated heterogeneous labeling effects suggest that consumers process nutrition information differently depending on which and how many claims are displayed and prefer products labeled with a single claim overall. When we simultaneously consider demand and supply responses under three price setting behaviors (competitive pricing, Bertrand‐Nash pricing, and monopoly pricing), we find that consumer surplus and overall welfare is highest when our labels display multiple nutrient claims and retailers are able to adjust prices across the entire product category. Firms' profits are highest when single nutrient claims are displayed, however. We conclude that firms with market power have little incentive to voluntarily display nutrition claims that maximize welfare.

中文翻译:

消费者和战略公司对营养货架标签的回应

几乎所有在美国销售的包装食品都必须显示营养成分。然而,制造商和零售商增加了他们自己的声明,以区分他们的产品并在销售点吸引消费者的注意力。我们在零售环境中在货架标签上实施实验性营养声明,并测试消费者对这些标签的反应如何,这些标签以不同的格式表达了营养成分面板上报告的信息。我们假设我们的标签要么统一改变对突出健康产品的需求,要么触发更复杂的需求轮换。我们估计的异质标签效应表明,消费者对营养信息的处理方式不同,具体取决于展示的声明的种类和数量,并且更喜欢总体上标有单一声明的产品。当我们同时考虑三种定价行为(竞争定价、Bertrand-Nash 定价和垄断定价)下的需求和供应响应时,我们发现当我们的标签显示多种营养声明并且零售商能够调整时,消费者剩余和整体福利最高整个产品类别的价格。然而,当显示单一营养声明时,公司的利润最高。我们得出的结论是,拥有市场支配力的公司几乎没有动力自愿展示使福利最大化的营养声明。我们发现,当我们的标签显示多种营养成分并且零售商能够调整整个产品类别的价格时,消费者剩余和整体福利最高。然而,当显示单一营养声明时,公司的利润最高。我们得出的结论是,拥有市场支配力的公司几乎没有动力自愿展示使福利最大化的营养声明。我们发现,当我们的标签显示多种营养成分并且零售商能够调整整个产品类别的价格时,消费者剩余和整体福利最高。然而,当显示单一营养声明时,公司的利润最高。我们得出的结论是,拥有市场支配力的公司几乎没有动力自愿展示使福利最大化的营养声明。
更新日期:2020-01-23
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