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• W1588184904 abstract "The role of information in markets has become a mainstay of the economics literature. Theoretical work has focused on the market effects of asymmetric information and costly search, incentives for voluntary disclosure, contracting, and other market and policy solutions to information issues (see Michael Katz [1989] and Joseph Stiglitz [1989] for recent reviews), and on how consumers' ability to use information could affect market outcomes, as in the recent work on information cascades (e.g., Sushil Bikhchandani et al., 1992). The empirical literature testing informational theories is more limited, in large part because the key variable of interest, information, is so difficult to measure. Most of the literature relies on indirect tests, usually based on regulatory differences, as in the study of state restrictions on advertising for eyeglasses (Lee Benham, 1972), or on new information or public education campaigns, typified by the studies of smoking (see W. Kip Viscusi [1992] for a recent summary). Other studies examine cross-sectional differences in behavior in an effort to assess whether human capital or other individual or household differences are important in explaining responses to evolving information. This paper follows these traditions. Specifically, this study examines changes in fat and saturated-fat consumption in the United States as information spread connecting these lipids to heart disease and cancer risks.1 The study examines changes in consumption during two regulatory regimes; the years 1977-1985, when government and general information sources continued their efforts to educate the public about the links between fats and disease risks, and when producers were free to label these characteristics on food packages and in advertising; and the years 1985-1990, when the regulatory ban was lifted that prohibited producers from explaining the reasons why consumers should be interested in the content of foods. This controversial regulatory change allowed the use of so-called health claims in labeling and advertising, subject to the normal deception rules for all advertising and labeling claims.2 Comparison of these two periods allows us to provide evidence on whether and how consumers reacted to the general flow of information prior to 1985, and whether advertising appears to have added information to the market or, as many critics believe, provided deceptive or sufficiently incomplete information to undermine public education efforts." @default.
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• W1588184904 date "1995-05-01" @default.
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• W1588184904 title "Information and advertising: the case of fat consumption in the United States." @default.
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