Seminar: "Information Framing and the Impact of Nutrition Label Serving Size Change" - Yizao Lui

Department of Agricultural, Food, and Resource Economics Seminar:

"Information Framing and the Impact of Nutrition Label Serving Size Change"

Yizao Lui
Associate Professor at Agricultural Economics at Penn State University
Penn State University

The framing of information can significantly influence how consumers interpret and respond to it. This paper investigates how the change in serving sizes in Nutrition Facts Panel (NFP) affects consumer choices for carbonated soft drinks (CSD). We first estimate a reduced form difference-in-differences (DID) model to document causal effects on purchasing behavior. We then develop and estimate an equilibrium structural model of both consumer demand and firms’ pricing and nutritional choices decisions. Our results show that larger labeled serving sizes significantly reduced demand for regular CSDs and lowered average nutrient intake. Counterfactual simulations indicate that more aggressive labeling (e.g., 16oz, 24 oz, or whole bottle) would amplify these effects, while firms would partially offset demand losses through subtle calorie, sodium, and caffeine reductions. These findings suggest that strategic serving size adjustments policies and product reformulations from food manufacturers may support healthier consumer choices.