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Salience and Health Campaigns

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  • Dertwinkel-Kalt Markus

    (Heinrich-Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Universitätsstr. 1, 40225 Düsseldorf, Germany)

Abstract

Motivated by current topics in health economics, we apply the theory of salience to consumer policy. If a government intends to encourage healthier diets without harming consumers by raising taxes, it could initiate information campaigns which focus consumers’ attention either on the healthiness of one item or the unhealthiness of the other item. According to our approach, both campaigns work, but it is more efficient to proclaim the unhealthiness of one product in order to present it as a “ bad.” Our findings imply that comparative advertisement is particularly efficient for entrant firms into established markets.

Suggested Citation

  • Dertwinkel-Kalt Markus, 2016. "Salience and Health Campaigns," Forum for Health Economics & Policy, De Gruyter, vol. 19(1), pages 1-22, June.
    • Handle: RePEc:bpj:fhecpo:v:19:y:2016:i:1:p:1-22:n:3
    DOI: 10.1515/fhep-2014-0019
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    Cited by:

    1. Herweg, Fabian & Müller, Daniel & Weinschenk, Philipp, 2017. "Salience, competition, and decoy goods," Economics Letters, Elsevier, vol. 153(C), pages 28-31.
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    3. Céline Bonnet & Jan Philip Schain, 2020. "An Empirical Analysis Of Mergers: Efficiency Gains And Impact On Consumer Prices," Journal of Competition Law and Economics, Oxford University Press, vol. 16(1), pages 1-35.

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    More about this item

    Keywords

    comparative advertisement; health policy; information campaign; salience;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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