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Smoking and Social Interaction

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Author Info
Panu Poutvaara () (University of Helsinki and IZA)
Lars-H. R. Siemers () (RWI Essen)

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Abstract

We study the social interaction of non-smokers and smokers as a sequential game, incorporating insights from social psychology and experimental economics into an economic model. Social norms affect human behavior such that non-smokers do not ask smokers to stop smoking and stay with them, even though disutility from smoking exceeds utility from social interaction. Overall, smoking is unduly often accepted when accommodating smoking is the social norm. The introduction of smoking and non-smoking areas does not overcome this specific inefficiency. We conclude that smoking bans may represent a required (secondbest) policy.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2666.

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Length: 33 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2666

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Related research
Keywords: smoking policy; social norms; guilt aversion; deviant behavior; social interaction;

Other versions of this item:

Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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