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Smoking Behavior and Rank-Dependent Expected-Uitility

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  • Christophe Courbage

Abstract

In this note we use the Rank-Dependent Expected-Utility (RDEU) model to analyse how the effect of improved information on smoking risks impacts the consumption of cigarettes. The RDEU model enables us to incorporate the ways individuals perceive smoking risks. We provide conditions for individuals to modify cigarette consumption in the face of improved information, and we show that these conditions depend in particular on the probability of being ill.

Suggested Citation

  • Christophe Courbage, 2006. "Smoking Behavior and Rank-Dependent Expected-Uitility," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(II), pages 223-230, June.
    • Handle: RePEc:ses:arsjes:2006-ii-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Rank-Dependent Expected-Utility; smoking; risk; cigarette consumption; information;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I1 - Health, Education, and Welfare - - Health

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