The economic value of food labels: A lab experiment on safer infant milk formula



Table 4. Testing for the ambiguity and information effect

Hypothesis1

Test

p-Value

Description

Effect

Wilcoxon’s

0.436

5th trial versus 5th

Cannot reject H0. No

signed-rank test

trial

significant ambiguity

Both        Both

H 0 : FUnclear = FClear

effect.

Wilcoxon’s
signed-rank test

0.013**

5th trial versus 1st

H0 can be rejected at the

trial

0.05 significance level.
Ambiguity effect present.

H :FUnclear = F Both

Kolmogorov-

0.303

5th trial versus 5th

Cannot reject H0. No

0 : Unclear = Unclear

Smirnov two-

trial

significant ambiguity

sample test

effect.

Unclear      Both

/ / y~1 ∣~l 1-, ∣~l 1-,

Kolmogorov-

0.247

5th trial versus 5th

Cannot reject H0. No

0 : Pr ep = Pr ep

Smirnov two-

trial

significant ambiguity

sample test

effect.

Clear      Both

Kolmogorov-

0.111

5th trial versus 5th

Cannot reject H0. No

0 : Clear = Clear

Smirnov two-

trial

significant ambiguity

sample test

effect.

Clear      Both

Kolmogorov-

0.077*

5th trial versus 5th

H0 can be rejected at the

0 : Pr ep = Pr ep

Smirnov two-

trial

0.10 significance level.

sample test

Ambiguity effect present.

Clear      Unclear

Kolmogorov-

0.292

5th trial versus 5th

Cannot reject H0. No

0 : Clear = Unclear

Smirnov two-

trial

significant ambiguity

sample test

effect.

Clear      Unclear

Kolmogorov-

0.163

5th trial versus 5th

Cannot reject H0. No

0 : Prep = Prep

Smirnov two-

trial

significant ambiguity

sample test

effect.

Both      Both

H0 : FClear = FPr ep

Wilcoxon’s
signed-rank test

0.000***

5th trial versus 5th
trial

H0 can be rejected at the
0.01 significance level.

Clear      Clear

H0 : FClear = FPr ep

Wilcoxon’s
signed-rank test

0.000***

5th trial versus 5th
trial

Significant information
effect present.

Unclear      Unclear

H0 : FUnclear = FPr ep

Wilcoxon’s

0.005***

5th trial versus 5th

H0 can be rejected at the

signed-rank test

trial

0.01 significance level.
Significant information

effect present.

Notes: 1Superscript = treatment, Subscript = trial, ***Significance level = 0.01/ ** Significance level =
0.05/ * Significance level = 0.10

10



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