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Response to Health Information: Evidence from Cigarette Consumption and Intake of Nicotine and Tar in Japan

Author

Listed:
  • Junmin Wan

    (Institute of Social and Economic Research, Osaka University)

Abstract

This paper introduces a new way to examine the effects of mandatory information disclosure on inter-brand cigarette demands and the behavior of a monopolistic firm in Japan. I estimated inter-brand demands by including nicotine, tar content, and policy event information in the model and by using cigarette brand sales data. I found that the mandatory disclosure of nicotine and tar content information decreased the intake of nicotine and tar per capita and per smoker; thus mandatory disclosure is likely to increase consumers f welfare, if we suppose that they always choose their favorite cigarette. Furthermore, I found that the monopolistic firm supplied more, new, and better quality products, discontinued the production of poorer quality goods, and conducted more R & D, in response to disclosure mandates.

Suggested Citation

  • Junmin Wan, 2004. "Response to Health Information: Evidence from Cigarette Consumption and Intake of Nicotine and Tar in Japan," Discussion Papers in Economics and Business 04-12, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:04-12
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    More about this item

    Keywords

    Rational addiction; Smoking; Health information; Tobacco control;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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