We propose a theoretical model in which uninformed consumers update their beliefs about the health effects of sugar in soft drinks through two sequential policies: an information campaign and a sugar tax. The information campaign is modeled as a costless signal (cheap talk), while the tax policy...

We propose a theoretical model in which uninformed consumers update their beliefs about the health effects of sugar in soft drinks through two sequential policies: an information campaign and a sugar tax. The information campaign is modeled as a costless signal (cheap talk), while the tax policy...