Consumer Responses to Firms’ Voluntary Disclosure of Information

This paper estimates the impact on consumer behavior of a firm’s voluntary disclosure of information. Specifically, we study the impact of Starbucks’ disclosure of calorie information on its menu boards in June 2013. Using a large data set of consumers’ visits to specific restaurant chains, we estimate difference-in-difference models that compare the change in the probability that consumers recently visited Starbucks with the change in the probability that they recently visited a similar chain that did not disclose calorie information: Dunkin’ Donuts. Estimates from difference-in-differences models indicate that we cannot reject the null hypothesis that Starbucks’ disclosure of calorie information had no detectable impact on the probability that consumers patronized Starbucks in the past month. However, we find an effect among men; after Starbucks’ information disclosure, the probability that men visit the chain fell by 1.0 percentage points (10.7 percent). There is no evidence of heterogeneity in effect by education or clinical weight classification. These results are useful for understanding how consumers respond to the voluntary disclosure of information, a decision many firms face.