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Nudges versus subsidies: Experimental evidence on the demand for a nutritious food in India

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  • Dizon, Felipe
  • Yu, Jisang

Abstract

Among mothers in Bihar, India, we launched a marketing campaign of a fortified food product for children. All mothers were offered the product at varying prices, while half of the mothers were randomly assigned to receive a low-cost nudge which reframes information from a nutrition behavioral change program. Among mothers who received the program, the nudge increased demand, reducing price elasticity by 18%. We find no effect of the nudge among mothers who had not completed the program. The impact of the nudge on demand was larger at higher prices and was as high as the impact of a 26% price reduction. We do not find differential impacts of the nudge by female empowerment, child health, or quality of child diets.

Suggested Citation

  • Dizon, Felipe & Yu, Jisang, 2021. "Nudges versus subsidies: Experimental evidence on the demand for a nutritious food in India," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 1091-1111.
    • Handle: RePEc:eee:jeborg:v:191:y:2021:i:c:p:1091-1111
    DOI: 10.1016/j.jebo.2021.08.017
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    More about this item

    Keywords

    Nutrition; Food demand; Nudges; Behavioral change;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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