the impact of mandatory disclosure laws on product choices an analysis of the salad dressing market abstract the nutrition labeling and education act nlea requires most food products to include a nutrition label prior to the nlea labeling was voluntary this study uses nutrition label information and supermarket scanner data pre and post nlea to examine the impact of moving from a voluntary to a mandatory labeling regime on consumer product choice the voluntary unraveling of information is shown to be an important market mechanism prior to the nlea all low fat salad dressings had a nutrition label while the majority of the higher fat dressings did not however there remained large variation in fat content among dressings that did not voluntarily label those with the highest fat levels experienced a significant decline in sales after they were required to disclose the results indicate that even in markets with credible low cost mechanisms to disclose mandatory labeling can have an impact on consumer behavior and health

sharing the burden for climate change mitigation in the canadian federation dividing the burden for greenhouse gas abatement amongst the provinces has proven challenging in canada and is a major factor contributing to canada s poor historic performance on greenhouse gas abatement as the country aims to achieve substantial cuts to emissions over the next decade and by mid century such burden sharing considerations are likely to be elevated in importance this paper uses a calibrated multi region multi sector computable general equilibrium model to compare a number of archetypal rules for sharing the burden of a joint commitment amongst members for the case of greenhouse gas reductions in canada because of the substantial heterogeneity amongst canadian provinces these different burden sharing rules imply signifcantly different relative abatement effort amongst provinces and also signifcantly different welfare implications when emission permits are allocated on an equal per capita basis welfare is increased in ontario british columbia quebec and manitoba and signifcantly reduced in alberta and saskatchewan in contrast when emission permits are allocated based on historic emissions alberta and saskatchewan are made better off and ontario british columbia quebec and manitoba are made worse off we compare these archetypal burden sharing rules to existing provincial emission reduction commitments and find that none of the standard burden sharing rules comes close to existing commitments we argue that the debate on burden sharing of greenhouse gas abatement in canada could be objectified if informed by coherent quantitative analysis such as the one presented here

why does the combination of the european union emissions trading scheme and a renewable energy target makes economic sense abstract the european climate and energy mix of targets and policies has been criticised by many economists in particular it is often argued that the renewable energy targets do not make economic sense because they represent an expensive option to reduce co2 emissions within a cap and trade scheme such as the european union emissions trading scheme eu ets in addition it has also been claimed that support for renewable electricity deployment negatively interacts with the eu ets having a dampening effect on the co2 price which favours the dirtiest technologies and is detrimental for the greener ones in this article we argue that this mainstream economic view is short sighted and that a multidisciplinary economic analysis of the climate and energy policy mix is required mainstream economic analysis is based on a narrow approach for the assessment of instrument combinations and neglects relevant insights from several economic disciplines including innovation economics and political economy approaches in reality economic theory supports the combination of an ets and renewable energy targets the existence of different policy goals and market failures the demand pull influence of renewable energy policies on innovation a political economy approach and the different risk exposure of renewable energy technologies call for a policy mix although policy combinations are not a panacea and bring problems on their own the aforementioned negative interaction between renewable energy deployment and the carbon price in the eu ets can be mitigated through appropriate coordination and or instrument choice and design

environmental and economic effects of the copenhagen pledges and more ambitious emission reduction targets abstract a multi region multi sector dynamic computable general equilibrium model is applied to explore the economic and welfare effects of the pledges submitted by developed countries annex i countries and major developing non annex i countries for 2020 under the copenhagen accord in addition to analyzing scenarios reflecting the upper and lower bounds of the copenhagen pledges one additional policy scenario where annex i countries as a group reduce co 2 emissions by 30 in 2020 compared to 1990 levels and where major non annex i countries reduce co 2 emissions 15 below baseline is also analyzed economic effects are measured as changes in gdp compared to baseline and welfare effects are measured via the equivalent variation assuming that countries with emission targets may trade certificates average reductions in gdp for countries with targets range between 0 1 and 0 7 in 2020 for the policy scenarios while the gdp losses are larger for major non annex i countries with emission targets compared to annex i countries this is not the case for the changes in welfare with the exception of mexico the welfare losses for the major non annex i regions as a percentage of projected gdp in 2020 are lower than for the large annex i countries

value of parsimonious nutritional information in a framed field experiment abstract this study investigates consumers beliefs about the tastiness and healthiness of 173 food items in a framed field experiment designed to mirror a grocery shopping environment using data collected from 129 food shoppers in grenoble france demand models are estimated to determine how product choice is affected by price taste and perceived healthiness and how choices change with the provision of objective health information unlike previous studies focusing on relatively complex nutrition labels we elicit and convey health information using simple nutritional indices meant to lower search and cognitive processing costs the results indicate that consumers are willing to pay for tastier foods and for healthier foods particularly if the consumers have objective information as opposed to perceived subjective information on nutrient content the estimates suggest that the value of the type of nutritional information provided in the experiment is 0 98 per day the figure refers to the daily welfare benefits that arise from being able to make a set of choices that better reflect people s preferences by receiving the nutrient index information on all 173 food items versus not having such information

estimating the marginal abatement cost curve of co2 emissions in china provincial panel data analysis abstract this paper estimates the marginal abatement cost curve macc of co2 emissions in china based on a provincial panel for the period of 2001 2010 the provincial marginal abatement cost mac of co2 emissions is estimated using a parameterized directional output distance function four types of model specifications are applied to fit the mac carbon intensity pairs the optimal specification controlling for various covariates is identified econometrically a scenario simulation of china s 40 45 carbon intensity reduction based on our macc is illustrated our simulation results show that china would incur a 559 623 yuan t roughly 51 57 increase in marginal abatement cost to achieve a corresponding 40 45 reduction in carbon intensity compared to its 2005 level

new products quality changes and welfare measures computed from estimated demand systems this paper examines the construction of a price index based on an estimated demand system in principle the method examined can produce a price index that takes account of the introduction of new p

designing an emissions trading scheme for china an up to date climate policy assessment abstract we assess recent chinese climate policy proposals in a multi region multi sector computable general equilibrium model with a chinese carbon emissions trading scheme ets when the emissions intensity per gdp in 2020 is required to be 45 lower than in 2005 the model simulations indicate that the climate policy induced welfare loss in 2020 measured as the level of gdp and welfare in 2020 under climate policy relative to their level under business as usual bau in the same year is about 1 the chinese welfare loss in 2020 slightly increases in the chinese rate of economic growth in 2020 when keeping the emissions target fixed at the 2020 level after 2020 in absolute terms the welfare loss will reach about 2 in 2030 if china s annual economic growth rate is 0 5 percentage points higher lower the climate policy induced welfare loss in 2030 will rise decline by about 0 5 percentage points full auctioning of carbon allowances results in very similar macroeconomic effects as free allocation but full auctioning leads to higher reductions in output than free allocation for ets sectors linking the chinese to the european ets and restricting the transfer volume to one third of the eu s reduction effort creates at best a small benefit for china yet with smaller sectoral output reductions than auctioning these results highlight the importance of designing the chinese ets wisely

on the effects of unilateral environmental policy on offshoring in multi stage production processes in the last decades supply chains emerged that stretch across many countries this has been explained with decreasing trade and communication costs we extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions we first apply an analytical partial equilibrium model of a two stage production process that can be distributed between two countries and investigate unilateral emission pricing and its supplementation with border carbon taxes to get a more comprehensive picture we subsequently apply a computable general equilibrium model that includes a better representation of international supply chains we find heterogeneous but mostly positive effects of a unilateral carbon emission reduction by the european union on the degree of vertical specialisation of european industries and explain these differences by heterogeneity in the emission intensity and pre policy vertical specialisation of sectors border taxes are successful in protecting upstream industries but with negative side effects for downstream industries

eu climate policy up to 2020 an economic impact assessment in its fight against climate change the eu is committed to reducing its overall greenhouse gas emissions to at least 20 below 1990 levels by 2020 to meet this commitment the eu builds on segmented market regulation with an eu wide cap and trade system for emissions from energy intensive installations ets sectors and additional measures by each eu member state covering emission sources outside the cap and trade system the non ets sector furthermore the eu has launched additional policy measures such as renewable energy subsidies in order to promote compliance with the climate policy target basic economic reasoning suggests that emission market segmentation and overlapping regulation can create substantial excess costs if we focus only on the climate policy target in this paper we evaluate the economic impacts of eu climate policy based on numerical simulations with a computable general equilibrium model of international trade and energy use our results highlight the importance of initial market distortions and imperfections as well as alternative baseline projections for the appropriate assessment of eu compliance cost

effects of an environmental tax on meat and dairy consumption in sweden this study evaluated the environmental impacts of introducing an environmental tax on meat and dairy consumption in sweden three meat products beef pork and chicken four dairy products milk fermented products cream and cheese and four pollutants generating environmental damage greenhouse gases ghg nitrogen ammonia and phosphorus were included in the analysis the unit tax applied corresponded to between 8 9 and 33 3 of the respective price per kg product in 2009 consumer response to the tax was calculated by econometric estimates of the almost ideal demand system aids for meat and dairy products using per capita consumption data and prices the results indicated relatively inelastic own price elasticities and high income elasticities for all meat products and slightly lower for dairy products simultaneous introduction of a tax on all seven products decreased emissions of ghg nitrogen ammonia and phosphorus from the livestock sector by up to 12

economic impact assessment of mega infrastructure pipeline projects the economic development features for the decades after the second world war provide evidence that investments to new infrastructures are a key driver in strengthening the national economy and enhancing nation s productivity as it creates economic benefits and additional income however the decision for fund allocation and investments in mega infrastructure pipeline projects often must be made in conditions that are much more fraught with uncertainty the key question in such decisions is if the economic impact caused by the new project could be able to essentially boost the economy by creating new jobs and generating new income on one hand and which are the business sectors expected to archive the benefits of this investment this article deals with the estimation of the mega infrastructure pipeline project economic effects in economy the methodological framework is based on input output approach providing quantitative estimations about the economic impact of the project in terms of new income and jo

the influence of expert reviews on consumer demand for experience goods a case study of movie critics an inherent problem in measuring the influence of expert reviews on the demand for experience goods is that a correlation between good reviews and high demand may be spurious induced by an underlying correlation with unobservable quality signals using the timing of the reviews by two popular movie critics siskel and ebert relative to opening weekend box office revenue we apply a difference in differences approach to circumvent the problem of spurious correlation after purging the spurious correlation the measured influence effect is smaller though still detectable positive reviews have a particularly large influence on the demand for dramas and narrowly released movies

nutrition information in the supermarket lists of nutrition information posted in supermarkets were designed to reduce the information processing costs of comparing alternative foods in experiment 1 lists of vitamins and minerals increased nutrition knowledge but had no influence on actual purchases in experiment 2 a list of added sugar a negative component of food increased the market share of low sugar breakfast cereals at the expense of high sugar brands we conclude that effort reducing displays are a successful technique for increasing information use especially for the more highly valued negative nutrients

the value added of sectoral disaggregation implications on competitive consequences of climate change policies global impact assessment of unilateral climate policies is commonly based on multi sector multi region computable general equilibrium cge models that are calibrated to consistent accounts of production consumption and bilateral trade flows however global economic databases such as gtap treat energy intensive and trade exposed industries rather in aggregate thereby missing potentially important details on the heterogeneity of these sectors in this paper we elaborate on the availability of data resources and methodological issues in disaggregating energy intensive and tradeexposed sectors that receive larger attention in the public policy debate on unilateral emission regulation non ferrous metals iron and steel and non metallic minerals our sensitivity analysis revolves around three types of unobserved heterogeneity at the sub sectoral level trade elasticities energy consumption and technology specifications drawing on the example of border tax adjustments we find that for all given technology specifications and variation in energy shares the biggest differences emerge from variations in armington elasticities even moderate changes in armington elasticities can alter the magnitude and the sign of the effects at the sectoral level the implications of sub sectoral disaggregation are not as pronounced for macroeconomic indicators and leakage as for sectoral indicators

search liquidity and the dynamics of house prices and construction the dynamics of house prices sales construction and population growth in response to city specific income shocks are characterized for 106 us cities a dynamic model of search in the housing market in which construction the entry of buyers house prices and sales are determined in equilibrium is then developed the theory generates dynamics qualitatively consistent with the observations and a version calibrated to match key features of the us housing market offers a substantial quantitative improvement over models without search in particular variation in the time it takes to sell induces transaction prices to exhibit serially correlated growth jel d83 r21 r23 r31 we explore the consequences of time consuming search and matching for the dynamics of house prices sales and construction at the city level first we char acterize the impact of city specific income shocks on the short run dynamics of average house prices home sales construction and population growth for a panel of us cities we then develop a model in which the entry of new buyers and the construction of new houses in response to such shocks are endogenously determined our theory generates serial correlation in the growth rates of house prices and construction even if income is strictly mean reverting following shocks 1 when calibrated to data on us cities our model accounts for over 80 percent of the variance of house price movements driven by city specific income shocks and nearly half of the observed autocorrelation of house price growth in our empirical analysis we estimate a structural panel vector autoregressive var model using city level observations on the variables listed above we focus

the effect of information on product quality evidence from restaurant hygiene grade cards this study examines the effect of an increase in product quality information to consumers on e rms choices of product quality in 1998 los angeles county introduced hygiene quality grade cards to be displayed in restaurant windows we show that the grade cards cause i restaurant health inspection scores to increase ii consumer demand to become sensitive to changes in restaurants hygiene quality and iii the number of foodborne illness hospitalizations to decrease we also provide evidence that this improvement in health outcomes is not fully explained by consumers substituting from poor hygiene restaurants to good hygiene restaurants these results imply that the grade cards cause restaurants to make hygiene quality improvements

shrouded attributes consumer myopia and information suppression in competitive markets bayesian consumers infer that hidden add on prices e g the cost of ink for a printer are likely to be high prices if consumers are bayesian firms will not shroud information in equilibrium however shrouding may occur in an economy with some myopic or unaware consumers such shrouding creates an inefficiency which firms may have an incentive to eliminate by educating their competitors customers however if add ons have close substitutes a curse of debiasing arises and firms will not be able to profitably debias consumers by unshrouding add ons in equilibrium two kinds of exploitation coexist optimizing firms exploit myopic consumers through marketing schemes that shroud high priced add ons in turn sophisticated consumers exploit these marketing schemes it is not possible to profitably drive away the business of sophisticates it is also not possible to profitably lure either myopes or sophisticates to nonexploitative firms we show that informational shrouding flourishes even in highly competitive markets even in markets with costless advertising and even when the shrouding generates allocational inefficiencies

genetically modified food labeling the impacts of message and messenger on consumer perceptions of labels and products abstract we analyze responses to a survey designed to elicit consumer reaction to various approaches to labeling genetically modified gm foods consumers were shown sample labels that differed with respect to claims concerning the presence and potential effects of gm ingredients and the agency that certified these claims a sample of 1898 us consumers rated 3681 labels with regard to the credibility and adequacy of the information content with regard to perceived health and environmental impacts of the product and with regard to purchase intent simple claims that a product contains gm ingredients are viewed as most credible while simple claims of no gm content are viewed as most adequate label claims certified by the us food and drug administration fda are in general viewed as most credible and adequate and products with fda certified claims are perceived to have fewer long term health problems several practical policy implications of the results are discussed including how different label messages may impact consumer reactions in markets involving gm products

effects of carbon reduction labels evidence from scanner data we investigate the effects of carbon reduction labels using a detailed scanner data set using a difference in differences estimation strategy we find that having a carbon label has no impact on detergent prices or demand we also investigate possible heterogeneous effects of carbon labels using the synthetic control method we find no evidence to indicate that the prices for the counterfactual detergents without the label would have been any different from the prices of the carbon labeled detergents we investigate the reasons for these results and conclude that the specific design of the carbon label is responsible for its lack of success jel d12 d83 l15 q54

a test of nutritional quality signaling in food markets prior to implementation of mandatory labeling in may 1994 new nutrition labeling regulations went into effect in the united states requiring mandatory disclosure of information on the nutritional content of foods this article uses grossman s model of totally effective quality signaling to evaluate whether markets were effective in information provision prior to the new regulation if markets were effective in providing information to consumers on the nutritional quality of foods the new regulation would be unnecessary the results of the logistic model where the probability of voluntary information disclosure is linked to the nutritional quality of food products and their prices indicate that private quality signaling was not reliably at work in food markets prior to implementation of the mandatory nutrition labeling regulation copyright 2000 oxford university press

measuring the welfare effects of nutrition information cost benefit analysis justifies regulations altering the amount of health related information presented to consumers the current method of benefit analysis the cost of avoided illness is limited it assumes the benefits of health related information are adequately represented by changes in illnesses the manuscript develops a benefit estimation method to measure the welfare impacts of providing nutrient information nutrient labeling significantly affects purchase behaviour but may not lead to increased consumption of health foods nutrient labeling may increase welfare without any change in health risk thus the cost of avoided illness approach can underestimate the social benefits of providing nutrient information copyright 2001 oxford university press

intra union flexibility of non ets emission reduction obligations in the european union the eu proposal on greenhouse gas emission reduction has 28 targets for 2020 an eu wide one for co2 emissions covered by the european trading system ets and one target for non ets emissions per member state implementation is more expensive than needed i consider three alternative proposals to reduce costs in the irish proposal member states can purchase ets permits to offset excess non ets emissions in the polish proposal member states can sell excess non ets emissions in the ets in the swedish proposal member states can trade their non ets allocations i compare these alternatives to the default policy no flexibility outside the ets and the cost effective solution full flexibility i calibrate a simple model to the results of the eu impact assessment which did not disclose all details and made odd assumptions the non ets allocation exceeds the projected emissions for three member states the alternative flexibility mechanisms would be used to only a limited extent but would cut the costs of meeting the target the swedish and polish proposals come closest to the cost effective solution because of the hot air the irish proposal performs best if there are negative surprises in either abatement costs or emissions the swedish proposal will become policy

information cost and consumer choices of healthy foods this article examines whether or not a reduction in consumer search cost for nutritional information increases the probability that heterogeneous consumers will choose healthier food products empirical results from the ready to eat breakfast cereal rtec market confirm the conceptual analysis that lowering information cost via simplified nutritional labeling increases the healthfulness of consumer choices the healthfulness attribute weighs 28 44 more heavily in consumers decision making with simpler labeling systems on average introducing front of package labeling increased the probability of a consumer choosing a healthy rtec by 3 49 and reduced the probability of choosing an unhealthy rtec by 3 81 calories sugar saturated fat and sodium consumption decrease by 0 31 2 63 6 94 and 1 97 respectively fiber intake increases by 3 24 further results show that less educated and smaller households with less frequent purchases benefit the most from a reduction in information cost overall this article shows the potentially positive role that voluntary more convenient labeling could play in improving market and public health outcomes

on the economics of labels how their introduction affects the functioning of markets and the welfare of all participants are labels good or bad for consumers and firms the answer may seem straightforward since labels improve information yet economic theory reveals situations where their introduction reduces the welfare of at least some market participants this essay reviews the theoretical literature on labels in order to identify and explain the main reasons that may cause labeling to produce undesirable side effects in contrast to earlier reviews that either concentrate on narrow topics or treat the subject in a more or less informal way we bring together the main results from all the relevant topics by presenting and discussing the assumptions and model building techniques that underpin them the advantage of this approach is that it identifies the origin of the differences between results thus allowing the synthesis of results that sometimes appear even to be contradictory we focus on quality labels and examine the impact of labeling on market structure the side effects of costly certification issues related to the label s trustworthiness the rationale for mandatory vs voluntary labeling the level at which the label s standard is set according to the agency that selects it the political economy of labels that is pro or anti label lobbying lobbying to affect the label s standard and lobbying in favor or against the label s mandatory imposition these topics cover a wide range of applications including genetically modified organism gmos organic produce geographic indicators controlled origin eco labels etc we conclude by identifying topics that require further research

what makes you grab low carb beers what makes people choose low carbohydrate high protein food low carb food which is good for health but usually tastes bad using panel data on us beer consumption in which each consumption occasion is uniquely associated with various companion based consumption contexts and exposure levels to diet information we analyse the variations in consumers preferences for low carb food the results show that there exist considerable gender differences in the preference variation under peer pressure first single females behave in a way they dislike drinking low carb beer in front of friends spouses and significant others second male both married and single and married females pretend to choose low carb beer when accompanied by spouses or significant others finally the elasticity of demand for healthy food with respect to news articles about low carb diets is positive yet with substantial differences in the degree of elasticity across demographic groups

the eu 20 20 2020 targets an overview of the emf22 assessment three computable general equilibrium models are used to estimate the economic implications of a stylized version of eu climate policy if implemented at the lowest possible cost the 20 emissions reduction would lead to a welfare loss of 0 5 2 0 by 2020 second best policies increase costs a policy with two carbon prices one for the ets one for the non ets could increase costs by up to 50 a policy with 28 carbon prices one for the ets one each for each member state could increase costs by another 40 the renewables standard could raise the costs of emissions reduction by 90 overall the inefficiencies in policy lead to a cost that is 100 125 too high the models differ greatly in the detail of their results the ets non ets split may have a negligible impact on welfare while the renewables standard may even improve welfare the models agree however that the distortions introduced by total eu package imply a substantial welfare loss over and above the costs needed to meet the climate target the marginal total and excess costs reported here are notably higher than those in the impact assessment of the european commission

can information costs affect consumer choice nutritional labels in a supermarket experiment this paper investigates whether information costs under currently regulated nutritional labeling prevent consumers from making healthier food choices we implement five nutritional shelf label treatments in a market level experiment these labels reduce information costs by highlighting and summarizing information available on the nutritional facts panel following a difference in differences and synthetic control method approach we analyze weekly store level scanner data for microwave popcorn purchases from treatment and control stores our results suggest that consumer purchases are affected by information costs implemented low calorie and no trans fat labels increase sales in contrast implemented low fat labels decrease sales suggesting that consumer response is also influenced by consumers taste perceptions a combination of these claims into one label treatment increases information costs and does not affect sales significantly

environmental regulation in an open economy abstract environmental regulation by a large trading country affects the world price of traded commodities a series of second best environmental taxes are derived which explicitly incorporate trade effects for cases which depend on the type of externality the regulating country s commodity trade balance and the presence or absence of trade taxes in the regulated market a coordinated policy solution using both tax and tariff instruments also is derived the practical implications for domestic environmental policy making which emerge from the theoretical results are evaluated

information and advertising the case of fat consumption in the united states the role of information in markets has become a mainstay of the economics literature theoretical work has focused on the market effects of asymmetric information and costly search incentives for voluntary disclosure contracting and other market and policy solutions to information issues see michael katz 1989 and joseph stiglitz 1989 for recent reviews and on how consumers ability to use information could affect market outcomes as in the recent work on information cascades e g sushil bikhchandani et al 1992 the empirical literature testing informational theories is more limited in large part because the key variable of interest information is so difficult to measure most of the literature relies on indirect tests usually based on regulatory differences as in the study of state restrictions on advertising for eyeglasses lee benham 1972 or on new information or public education campaigns typified by the studies of smoking see w kip viscusi 1992 for a recent summary other studies examine cross sectional differences in behavior in an effort to assess whether human capital or other individual or household differences are important in explaining responses to evolving information this paper follows these traditions specifically this study examines changes in fat and saturated fat consumption in the united states as information spread connecting these lipids to heart disease and cancer risks 1 the study examines changes in consumption during two regulatory regimes the years 1977 1985 when government and general information sources continued their efforts to educate the public about the links between fats and disease risks and when producers were free to label these characteristics on food packages and in advertising and the years 1985 1990 when the regulatory ban was lifted that prohibited producers from explaining the reasons why consumers should be interested in the content of foods this controversial regulatory change allowed the use of so called health claims in labeling and advertising subject to the normal deception rules for all advertising and labeling claims 2 comparison of these two periods allows us to provide evidence on whether and how consumers reacted to the general flow of information prior to 1985 and whether advertising appears to have added information to the market or as many critics believe provided deceptive or sufficiently incomplete information to undermine public education efforts

unintended nutrition consequences firm responses to the nutrition labeling and education act this paper investigates how firms responded to standardized nutrition labels on food products required by the nutrition labeling and education act nlea using a longitudinal quasi experimental design we test our predictions using two large scale samples that span 30 product categories results indicate that the nlea reduced brand nutritional quality relative to a control group of products not regulated by the nlea at the same time among regulated products brand taste increased although this reduction in nutrition represents an unintended consequence of regulation there were a set of category firm and brand conditions under which the nlea produced a positive effect on brand nutritional quality we find that firms were more likely to improve brand nutrition when firm risk or firm power is low lower risk occurs when the firm is introducing a new brand rather than changing an existing brand and weaker power in a category is reflected by lower market share in a category furthermore firms competing in low health categories e g potato chips or small portion categories e g peanut butter improved nutrition more than firms competing in high health categories e g bread or large portion categories e g frozen dinners recommendations for firm strategy and the design of consumer information policy are examined in light of these surprising firm responses