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Prospective Evaluation of Health Communication Effects on Market Outcomes

Published online by Cambridge University Press:  08 April 2022

Rosemarie L. Summers
Affiliation:
Unaffiliated
Dallas W. Wood
Affiliation:
Center for Applied Economics and Strategy, RTI International, Research Triangle Park, NC, USA
Nellie Lew
Affiliation:
Office of Aviation Policy and Plans, Federal Aviation Administration, Washington, DC, USA
Shawn A. Karns
Affiliation:
Center for Applied Economics and Strategy, RTI International, Research Triangle Park, NC, USA
Mary K. Muth
Affiliation:
Center for Applied Economics and Strategy, RTI International, Research Triangle Park, NC, USA
Clark Nardinelli
Affiliation:
Unaffiliated
Janet G. Peckham*
Affiliation:
Office of the Commissioner, Food and Drug Administration, 10903 New Hampshire Avenue, Silver Spring, MD 20993, USA
Carolyn Wolff
Affiliation:
Office of the Commissioner, Food and Drug Administration, 10903 New Hampshire Avenue, Silver Spring, MD 20993, USA
*
*Corresponding author: e-mail: [email protected]

Abstract

Partial equilibrium models have been used extensively by policy makers to prospectively determine the consequences of government programs that affect consumer incomes or the prices consumers pay. However, these models have not previously been used to analyze government programs that inform consumers. In this paper, we develop a model that policy makers can use to quantitatively predict how consumers will respond to risk communications that contain new health information. The model combines Bayesian learning with the utility-maximization of consumer choice. We discuss how this model can be used to evaluate information policies; we then test the model by simulating the impacts of the North Dakota Folic Acid Educational Campaign as a validation exercise.

Type
Article
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Society for Benefit-Cost Analysis

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