Regular or low-fat? An investigation of the long-run impact of the first low-fat purchase on subsequent purchase volumes and calories

Health organizations stimulate the development of low-fat variants to fight the obesity epidemic. We examine the effectiveness of this policy by studying the short- and long-term consequences of the first low-fat purchase on subsequent purchased volume and calories. Using a structural break analysis, we show that purchases increase in the short run after the first low-fat purchase, thereby confirming the single-occasion overconsumption effect of...