Information framing and the impact of nutrition label serving size change

Abstract The framing of information can significantly influence how consumers interpret and respond to it. This paper investigates how the change in serving sizes in Nutrition Facts Panel (NFP) affects consumer choices for carbonated soft drinks (CSD). We first estimate a reduced form difference‐in‐differences (DiD) model to document causal effects on purchasing behavior. We then develop and estimate an equilibrium structural model of both consumer demand and firms' pricing and nutritional choices. Our results show that larger labeled serving sizes significantly reduced demand for regular CSDs, leading to a decline in the average amount of nutrients sold. Counterfactual simulations indicate that larger serving size adjustments (e.g., 16 oz, 24 oz, or whole bottle) would amplify these effects, while firms would partially offset demand losses through subtle calorie, sodium, and caffeine reductions. These findings suggest that strategic serving size adjustments and product reformulations from food manufacturers may support healthier consumer choices. Our welfare analysis shows that sufficiently aggressive serving size adjustments can dominate soda tax at low to moderate values of the marginal value of public funds, delivering comparable reductions in nutrient purchases without the regressive price burden that excise taxes impose on lower‐income consumers.