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Testing an Information Intervention: Experimental Evidence on the Effect of Jamie Oliver on Fizzy Drinks Demand

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Listed:
  • John Gibson

    (University of Waikato)

  • Steven Tucker

    (University of Waikato)

  • Geua Boe-Gibson

    (University of Waikato)

Abstract

We conducted a salient purchasing experiment to test if an information intervention alters fizzy drinks demand. Subjects in our experiment initially made five rounds of purchases, for 14 items (energy drinks, colas, and lemonades) selected from a stratified sample of retailers. Subjects faced seven pricing environments, reflecting baseline prices, two ad valorem taxes, two specific taxes, and ad valorem and specific price cuts to reflect retailer discounting. Subjects then watched a video presentation by celebrity chef Jamie Oliver, which highlighted adverse health effects of sugary drinks. The five rounds of choices were then repeated, to generate within-subject before and after demands that show an overall 25 percent reduction in purchases due to the information intervention. Demand for one sugar-free option, Diet Coke, rose 36 percent after the intervention. The impacts under baseline prices were little different to those seen in conjunction with tax-induced price rises. Effects of the information intervention were larger for females, for the young, for the less educated, for those usually spending more on soft drinks, and for those who usually ignore sugar content when making purchases.

Suggested Citation

  • John Gibson & Steven Tucker & Geua Boe-Gibson, 2019. "Testing an Information Intervention: Experimental Evidence on the Effect of Jamie Oliver on Fizzy Drinks Demand," Working Papers in Economics 19/08, University of Waikato.
    • Handle: RePEc:wai:econwp:19/08
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    References listed on IDEAS

    as
    1. Rebecca L. C. Taylor & Scott Kaplan & Sofia B. Villas‐Boas & Kevin Jung, 2019. "Soda Wars: The Effect Of A Soda Tax Election On University Beverage Sales," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1480-1496, July.
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    4. John Gibson & Alessandro Romeo, 2017. "Fiscal-Food Policies are Likely Misinformed by Biased Price Elasticities from Household Surveys: Evidence from Melanesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 405-416, September.
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    6. Andalón, Mabel & Gibson, John, 2018. "The ‘soda tax’ is unlikely to make Mexicans lighter or healthier: New evidence on biases in elasticities of demand for soda," MPRA Paper 86370, University Library of Munich, Germany.
    7. Nadia A. Streletskaya & Pimbucha Rusmevichientong & Wansopin Amatyakul & Harry M. Kaiser, 2014. "Taxes, Subsidies, and Advertising Efficacy in Changing Eating Behavior: An Experimental Study," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(1), pages 146-174.
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    10. Nadia A. Streletskaya & Harry M. Kaiser, 2014. "Reply to Comment on Taxes, Subsidies, and Advertising Efficacy in Changing Eating Behavior: An Experimental Study," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 722-726.
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    More about this item

    Keywords

    experiment; health; information; Jamie Oliver; soda taxes; sugar;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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