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Addiction and Health: How Consumer Goods become Bads?

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  • Yoshida, Ken
  • Ono-Yoshida, Rie

Abstract

The purpose of this paper is to discuss addiction from the perspective of relationships between health and addictive behavior, by focusing on delayed symptoms (health effects). Some consumer goods are not simply "good," but have an aspect of "bad," which might cause damage to health a while after consumption. Our study deals with goods which turn into "bads" after a while. In this paper, we first assume that addictive goods can either be good or bad, depending on each individual's situation. Our results indicate that the intake of addictive goods will increase over time. They also imply that individuals who are cautious about the future are less prone to addiction problems, while short-sighted individuals are more likely to suffer from a serious addiction.

Suggested Citation

  • Yoshida, Ken & Ono-Yoshida, Rie, 2022. "Addiction and Health: How Consumer Goods become Bads?," MPRA Paper 113388, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113388
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    File URL: https://mpra.ub.uni-muenchen.de/113388/1/MPRA_paper_113388.pdf
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    References listed on IDEAS

    as
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    2. Dockner, Engelbert J & Feichtinger, Gustav, 1993. "Cyclical Consumption Patterns and Rational Addiction," American Economic Review, American Economic Association, vol. 83(1), pages 256-263, March.
    3. 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.
    4. Auld, M. Christopher & Grootendorst, Paul, 2004. "An empirical analysis of milk addiction," Journal of Health Economics, Elsevier, vol. 23(6), pages 1117-1133, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    addiction; addictive goods; health; damage function; subjective discount rate;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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