Em. Mojduszka et Ja. Caswell, A test of nutritional quality signaling in food markets prior to implementation of mandatory labeling, AM J AGR EC, 82(2), 2000, pp. 298-309
In May 1994, new nutrition labeling regulations went into effect in the Uni
ted States requiring mandatory disclosure of information on the nutritional
content of foods This article uses Grossman's model of totally effective q
uality signaling to evaluate whether markets were effective in information
provision prior to the new regulation. II markets were effective in providi
ng information to consumers on the nutritional quality of foods the new reg
ulation would bcr unnecessary. The results of the logistic model, where the
probability of voluntary information disclosure is linked to the nutrition
al 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.