This paper explores how lowering consumer search costs based on labeling formats affects the probability of choosing healthy foods. We propose a theoretical model of the links between information costs and consumer choices of healthy foods and empirically test the ensuing propositions with...

This paper applies the Becker-Murphy (1988) theory of rational addiction to the case of carbonated soft drinks, using a time-varying parameter model and scanner data from 46 U.S. cities. Empirical results provide strong evidence that carbonated soft drinks are rationally addictive, thus opening...