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Effect of Information on Consumer Perception: Evidence from Restaurant Hygiene Grade Cards in New York City

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  • Kang, Danyang

Abstract

This study examines the effects of increasing provision of hygiene quality information on consumer assessment of restaurant quality. In July 2010 New York City introduced mandatory hygiene grade cards to be displayed in restaurants. I show that both an A grade and better inspection scores are correlated with higher ratings in food, decor, service and price, with the former having a larger impact. These results suggest that consumers give much credence to the information provided by hygiene grade cards but the underlying scores might not reflect the true hygiene quality of restaurants.

Suggested Citation

  • Kang, Danyang, 2015. "Effect of Information on Consumer Perception: Evidence from Restaurant Hygiene Grade Cards in New York City," Working Papers 231156, American Association of Wine Economists.
    • Handle: RePEc:ags:aawewp:231156
    DOI: 10.22004/ag.econ.231156
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    File URL: https://ageconsearch.umn.edu/record/231156/files/AAWE_WP183.pdf
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    References listed on IDEAS

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    1. Olivier Gergaud & Karl Storchmann & Vincenzo Verardi, 2015. "Expert Opinion And Product Quality: Evidence From New York City Restaurants," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 812-835, April.
    2. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    3. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect of Information on Product Quality: Evidence from Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 409-451.
    Full references (including those not matched with items on IDEAS)

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