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Demand Reduction from Plain and Pictorial Cigarette Warning Labels: Evidence from Experimental Auctions

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  • Matthew C. Rousu
  • James F. Thrasher

Abstract

We report the results of experimental auctions with U.S. smokers, assessing the percentage of U.S. smokers whose demand for cigarettes decreases when bidding on packs with text and pictorial warnings, relative to packs with text-only warnings. We find that pictorial labels and pictorial labels accompanied by plain packaging are more effective at reducing demand for cigarettes than only a front text warning label. We also find that pictorial labels were most effective at encouraging younger smokers to reduce their demand for cigarettes, and plain packaging was most effective at reducing demand among less educated smokers.

Suggested Citation

  • Matthew C. Rousu & James F. Thrasher, 2013. "Demand Reduction from Plain and Pictorial Cigarette Warning Labels: Evidence from Experimental Auctions," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(1), pages 171-184.
    • Handle: RePEc:oup:apecpp:v:35:y:2013:i:1:p:171-184.
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    File URL: http://hdl.handle.net/10.1093/aepp/pps049
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    Cited by:

    1. Joachim Marti & Jody Sindelar, 2015. "Smaller Cigarette Pack as a Commitment to Smoke Less? Insights from Behavioral Economics," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-14, September.
    2. O'Connor, Richard J. & Rousu, Matthew C. & Corrigan, Jay R. & Travers, Maansi Bansal, 2018. "Does winning an experimental auction change people's behavior? An application to e-cigarettes," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 281-285.

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