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

Danyang Kang

No 231156, Working Papers from American Association of Wine Economists

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.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; Industrial Organization (search for similar items in EconPapers)
Pages: 26
Date: 2015-09
New Economics Papers: this item is included in nep-mkt
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DOI: 10.22004/ag.econ.231156

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