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Cigarettes and addiction information: new evidence in support of the rational addiction model

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  • Fenn, Aju J.
  • Antonovitz, Frances
  • Schroeter, John R.

Abstract

A 1979 U.S. Surgeon General's report provided the first conclusive public information of nicotine's addictive effects. We test the hypothesis that cigarette demand was of a "myopic" nature prior to 1979, but forward-looking, or "rational," thereafter.
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  • Fenn, Aju J. & Antonovitz, Frances & Schroeter, John R., 2001. "Cigarettes and addiction information: new evidence in support of the rational addiction model," Economics Letters, Elsevier, vol. 72(1), pages 39-45, July.
    • Handle: RePEc:eee:ecolet:v:72:y:2001:i:1:p:39-45
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    1. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    2. Wooldridge, Jeffrey M., 1990. "A note on the Lagrange multiplier and F-statistics for two stage least squares regressions," Economics Letters, Elsevier, vol. 34(2), pages 151-155, October.
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    5. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    6. Winston, Gordon C., 1980. "Addiction and backsliding : A theory of compulsive consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 1(4), pages 295-324, December.
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    Cited by:

    1. Lori S. Bennear, 2008. "What do we really know? The effect of reporting thresholds on inferences using environmental right‐to‐know data," Regulation & Governance, John Wiley & Sons, vol. 2(3), pages 293-315, September.
    2. Junmin Wan, 2006. "Cigarette tax revenues and tobacco control in Japan," Applied Economics, Taylor & Francis Journals, vol. 38(14), pages 1663-1675.
    3. John Schroeter & Aju Fenn, 2005. "Structural change in cigarette demand: cusum tests using panel data," Economics Bulletin, AccessEcon, vol. 9(8), pages 1-11.
    4. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    5. Pierpaolo Pierani & Silvia Tiezzi, 2009. "Addiction and interaction between alcohol and tobacco consumption," Empirical Economics, Springer, vol. 37(1), pages 1-23, September.
    6. Robert Kaestner & Kevin Callison, 2018. "An Assessment of the Forward‐Looking Hypothesis of the Demand for Cigarettes," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 48-70, July.
    7. repec:ebl:ecbull:v:9:y:2005:i:8:p:1-11 is not listed on IDEAS
    8. Aju Fenn & John Schroeter, 2004. "Cigarettes and addiction information: simulating the demand effects of the tobacco industry's 'conspiracy of silence'," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2151-2159.
    9. Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 158-179, March.
    10. Toro-Gonzalez, Daniel & McCluskey, Jill J. & Mittelhammer, Ron, 2014. "Beer Snobs Do Exist: Estimation of Beer Demand by Type," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-14.
    11. Craig A. Gallet, 2006. "Health information and cigarette consumption: supply and spatial considerations," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(1), pages 35-47, March.
    12. Zaifu Yang & Rong Zhang, 2022. "A Stochastic Model of Rational Addiction," Annals of Economics and Finance, Society for AEF, vol. 23(2), pages 223-251, November.
    13. Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, May.
    14. Martyn Duffy, 2006. "Tobacco consumption and policy in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1235-1257.
    15. Zaifu Yang & Rong Zhang, 2014. "Rational Addictive Behavior under Uncertainty," Discussion Papers 14/12, Department of Economics, University of York.
    16. Jay Shimshack, 2004. "Are Mercury Advisories Effective? Inofrmation, Education, and Fish Consumption," Discussion Papers Series, Department of Economics, Tufts University 0423, Department of Economics, Tufts University.
    17. Bennear, Lori S. & Olmstead, Sheila M., 2008. "The impacts of the "right to know": Information disclosure and the violation of drinking water standards," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 117-130, September.
    18. Julian Reif, 2019. "A Model Of Addiction And Social Interactions," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 759-773, April.
    19. Hammar, Henrik & Martinsson, Peter, 2001. "The Effect Of Cigarette Prices And Antismoking Policies On The Age Of Smoking Initiation," Working Papers in Economics 62, University of Gothenburg, Department of Economics.
    20. Sloan, Frank A. & Smith, V. Kerry & Taylor, Donald Jr., 2002. "Information, addiction, and 'bad choices': lessons from a century of cigarettes," Economics Letters, Elsevier, vol. 77(2), pages 147-155, October.
    21. Yi-Chi Chen & Chang-Ching Lin, 2010. "Threshold Effects in Cigarette Addiction: An Application of the Threshold Model in Dynamic Panels," Economics Bulletin, AccessEcon, vol. 30(4), pages 3128-3142.

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