Welfare Loss from Inaccurate Information: An Economic Model with Application to Food Labels
- 1 December 1981
- journal article
- Published by Wiley in Journal of Consumer Affairs
- Vol. 15 (2) , 214-231
- https://doi.org/10.1111/j.1745-6606.1981.tb00710.x
Abstract
This study develops an economic framework which explains the welfare loss to consumers from imperfect information and provides a mechanism for analyzing the benefits from improved information. The model is applied to imperfect net weight information for packaged chicken and empirical estimates of the resulting welfare loss are obtained.Keywords
This publication has 14 references indexed in Scilit:
- On Information and SatisfactionSouthern Economic Journal, 1980
- Consumer Use and Comprehension of Nutrition InformationJournal of Consumer Research, 1977
- Information Acquisition Behavior in Brand Choice SituationsJournal of Consumer Research, 1977
- The Response of Consumers to Nutrition LabelingJournal of Consumer Affairs, 1976
- Imperfect Consumers and Welfare Comparisons of Policies concerning Information and RegulationThe Bell Journal of Economics, 1976
- Patterns of Information Acquisition in New Product PurchasesJournal of Consumer Research, 1974
- On the New Theory of Consumer BehaviorThe Swedish Journal of Economics, 1973
- Nutrition Labeling for Canned Goods: A Study of Consumer ResponseJournal of Marketing, 1973
- Information and Consumer BehaviorJournal of Political Economy, 1970
- A New Approach to Consumer TheoryJournal of Political Economy, 1966