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AbstractEconomic analysis assumes that consumer behaviour can be rationalised by a utility function. Previous research has shown that some consistency of choices with economic rationality can be captured by permanent cognitive ability. No other known study however has examined how a temporary load in subjects' working memory can affect economic rationality. Using two controlled laboratory experiments, we exogenously vary cognitive load by asking subjects to memorise a number while they undertake an induced budget allocation task (Choi et al., 2007a, b). Using a number of manipulation checks, we verify that cognitive load has adverse effects on subjects' performance in reasoning tasks. However, we find no effect in any of the goodness-of-fit measures that measure consistency of subjects' choices with the Generalized Axiom of Revealed Preference (GARP), despite having a sample size large enough to detect even small differences between treatments with 80% power. We also find no effect on first-order stochastic dominance and risk preferences. Our finding suggests that economic rationality can be attained even when subjects are placed under temporary working memory load, despite the fact that the load has adverse effects in reasoning tasks.

In this paper, we review published studies to assess the influence of time preferences on human health behaviour. Our review indicates that elicited discount rates for health have been found to be higher than those for money in both the social and private context. We discuss the importance of discount rates for public policy since high time discount rates can contribute to governmental emphasis on acute health care, rather than preventive health care. We then examine how time preferences interrelate with specific health concerns such as smoking or obesity. We find that even when time preferences are elicited in the monetary domain, they can be successful in predicting smoking cessation and likewise for obesity. We also discuss how time preferences relate with teen risk taking behavior.

Abstract In this paper, we review published studies to assess the influence of time preferences on human health behaviour. Our review indicates that elicited discount rates for health have been found to be higher than those for money in both the social and private context. We discuss the importance of discount rates for public policy since high time discount rates can contribute to governmental emphasis on acute health care, rather than preventive health care. We then examine how time preferences interrelate with specific health concerns such as smoking or obesity. We find that even when time preferences are elicited in the monetary domain, they can be successful in predicting smoking cessation and likewise for obesity. We also discuss how time preferences relate with teen risk taking behavior. JEL codes D91, I0

SUMMARYMany countries around the world have already mandated, or plan to mandate, the presence of nutrition related information on most pre‐packaged food products. Health advocates and lobbyists would like to see similar laws mandating nutrition information in the restaurant and fast‐food market as well. In fact, New York City has already taken a step forward and now requires all chain restaurants with 15 or more establishments anywhere in US to show calorie information on their menus and menu board. The benefits were estimated to be as much as 150,000 fewer obese New Yorkers over the next five years.The implied benefits of the presence of nutrition information are that consumers will be able to observe such information and then make informed (and hopefully healthier) food choices. In this study, we use the latest available dataset from the US National Health and Nutrition Examination Survey (2005–2006) to explore whether reading such nutrition information really has an effect on body weight outcomes. In order to deal with the inherent problem of cross‐sectional datasets, namely self‐selection, and the possible occurrence of reverse causality we use a propensity score matching approach to estimate causal treatment effects.We conducted a series of tests related to variable choice of the propensity score specification, quality of matching indicators, robustness checks, and sensitivity to unobserved heterogeneity, using Rosenbaum bounds to validate our propensity score exercise. Our results generally suggest that reading nutrition information does not affect body mass index. The implications of our findings are also discussed.

ABSTRACTThe European Union (EU) is contemplating regulations requiring mandatory provision of nutritional information on food products. This study analyses consumers' valuation of nutritional information using data collected from a field survey. The results generally suggest that consumers value and are willing to pay about 5.9 percent of the original price for nutritional information on the food product we studied. Individuals who are non‐price‐sensitive, nutritionally knowledgeable and with longer time horizon are willing to pay more for nutritional information than others. Considering consumers' willingness to pay for nutritional information on food products and an EU impact assessment study, the costs of provision of this information are not prohibitive to firms. We estimate that the least conservative cost of labelling to the firm for a specific food product can be as much as €29,431, whereas the average economic value of nutrition information is estimated at €17,064. The firm can therefore recoup the associated costs in less than two months.