Targeting Transparency

Weil, David; Graham, Mary; Fung, Archon

doi:10.1126/science.1233480

Cited by 42 publications

(40 citation statements)

References 13 publications

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“…Because strategic firm response can limit the impact of nutrition labels overall, effective regulation of information provision requires accounting for this behavior (Weil, Grahman, and Fung ). Moorman, Ferraro, and Huber () find that some food manufacturers decreased their nutritional quality due to NFP regulations, and Mohr, Lichtenstein, and Janiszewski () detect that firms manipulated serving size to make the information displayed on NFPs less salient.…”

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confidence: 99%

Consumer and Strategic Firm Response to Nutrition Shelf Labels

Villas-Boas¹,

Kiesel²,

Berning

et al. 2020

American J Agri Economics

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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.

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confidence: 99%

Consumer and Strategic Firm Response to Nutrition Shelf Labels

Villas-Boas¹,

Kiesel²,

Berning

et al. 2020

American J Agri Economics

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“…It is widely believed that public reporting can enable consumers to make better informed choices and improve health care practices. Patients may modify their choice of providers or other decisions on the basis of the available performance measures20. Although in some health systems, consumers have limited choice2122, health care providers may still face pressure from managerial interventions and social expectations to change their practices23.…”

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confidence: 99%

Public reporting as a prescriptions quality improvement measure in primary care settings in China: variations in effects associated with diagnoses

Tang

Liu

Zhang

2016

Sci Rep

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The overprovision and irrational use of antibiotics and injections are a major public health concern. Public reporting has been adopted as a strategy to encourage good prescribing practices. This study evaluated the effects of public reporting on antibiotic and injection prescriptions in urban and rural primary care settings in Hubei province, China. A randomized control trial was conducted, with 10 primary care institutions being subject to public reporting and another 10 serving as controls. Prescription indicators were publicly reported monthly over a one-year period. Prescriptions for bronchitis, gastritis and hypertension before and after the intervention were collected. Difference-in-difference tests were performed to estimate the effect size of the intervention on five prescription indicators: percentage of prescriptions containing antibiotics; percentage of prescriptions containing two or more antibiotics; percentage of prescriptions containing injections; percentage of prescriptions containing antibiotic injections; and average prescription cost. Public reporting had varied effects on prescriptions for different diagnoses. It reduced antibiotic prescribing for gastritis. Prescriptions containing injections, especially antibiotic injections, also declined, but only for gastritis. A reduction of prescription costs was noted for bronchitis and gastritis. Public reporting has the potential to encourage good prescribing practices. Its effects vary with different disease conditions.

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“…Moreover, getting traceability right would provide other far-reaching advantages, such as settling commercial disputes (e.g., the case of the EU seal products ban brought to the World Trade Organization (COWI 2010)) and providing a framework for improved transparency, as requested by academia (Weil et al 2013) and consumers (Lye 2011 Stilgoe et al 2014;Lehuger et al 2009). …”

Section: Discussionmentioning

confidence: 99%