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

Felipe Dizon and Jisang Yu

Journal of Economic Behavior & Organization, 2021, vol. 191, issue C, 1091-1111

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.

Keywords: Nutrition; Food demand; Nudges; Behavioral change (search for similar items in EconPapers)
JEL-codes: D12 D91 H42 O12 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:191:y:2021:i:c:p:1091-1111

DOI: 10.1016/j.jebo.2021.08.017

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