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NBER Working Papers and Publications
|January 2016||Incentivizing Nutritious Diets: A Field Experiment of Relative Price Changes and How They are Framed|
with John Cawley, Andrew S. Hanks, David R. Just: w21929
This paper examines how consumers respond to price incentives for nutritious relative to less-nutritious foods, and whether the framing of the price incentive as a subsidy for nutritious food or a tax on non-nutritious food influences consumers’ responses. Analyzing transaction data from an 8-month randomized controlled field experiment involving 208 households, we find that a 10% relative price difference between nutritious and less nutritious food does not significantly affect overall purchases, although low-income households respond to the subsidy frame by buying more of both nutritious and less-nutritious food.