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Estimating the impact of pictorial health warnings and "plain" cigarette packaging: Evidence from experimental auctions among adult smokers in the United States

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  • Thrasher, James F.
  • Rousu, Matthew C.
  • Hammond, David
  • Navarro, Ashley
  • Corrigan, Jay R.

Abstract

Objective To estimate differences in demand for cigarette packages with different packaging and health warning label formats.Methods Adult smokers (n = 404) in four states participated in experimental auctions. Participants bid on two of four experimental conditions, each involving a different health warning label format but with the same warning message: (1) text on 50% of pack side; (2) text on 50% of the pack front and back; (3) text with a graphic picture on 50% of the pack front and back; and (4) same as previous format, but without brand imagery.Results Mean bids decreased across conditions (1: $3.52; 2: $3.43; 3: $3.11; 4: $2.93). Bivariate and multivariate random effects models indicated that there was no statistically significant difference in demand for packs with either of the two text only warnings; however, demand was significantly lower for both packs with prominent pictorial warnings, with the lowest demand associated with the plain, unbranded pack.Conclusions Results suggest that prominent health warnings with graphic pictures will reduce demand for cigarettes. Regulators should not only consider this type of warning label, but also plain packaging policies for tobacco products.

Suggested Citation

  • Thrasher, James F. & Rousu, Matthew C. & Hammond, David & Navarro, Ashley & Corrigan, Jay R., 2011. "Estimating the impact of pictorial health warnings and "plain" cigarette packaging: Evidence from experimental auctions among adult smokers in the United States," Health Policy, Elsevier, vol. 102(1), pages 41-48, September.
    • Handle: RePEc:eee:hepoli:v:102:y:2011:i:1:p:41-48
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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. Francesco Bogliacino & Cristiano Codagnone & Giuseppe Alessandro Veltri & Amitav Chakravarti & Pietro Ortoleva & George Gaskell & Andriy Ivchenko & Francisco Lupiáñez-Villanueva & Francesco Mureddu & , 2015. "Pathos & Ethos: Emotions and Willingness to Pay for Tobacco Products," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-25, October.
    3. Ellison, Brenna & Kirwan, Barrett & Nepal, Atul, "undated". "Consumers' Willingness to Pay for Bioplastic Plant Containers: An Experimental Auction Approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205670, Agricultural and Applied Economics Association.
    4. Frank Maier-Rigaud, 2013. "The Commission proposal for a European Tobacco Products Directive - A critical evaluation of the Roland Berger studies," Working Papers 2013-ECO-06, IESEG School of Management.
    5. James F. Thrasher & Farahnaz Islam & Rachel E. Davis & Lucy Popova & Victoria Lambert & Yoo Jin Cho & Ramzi G. Salloum & Jordan Louviere & David Hammond, 2018. "Testing Cessation Messages for Cigarette Package Inserts: Findings from a Best/Worst Discrete Choice Experiment," IJERPH, MDPI, vol. 15(2), pages 1-21, February.
    6. Corrigan, Jay R. & Rousu, Matthew C. & Depositario, Dinah Pura T., 2014. "Do practice rounds affect experimental auction results?," Economics Letters, Elsevier, vol. 123(1), pages 42-44.
    7. Lencucha, Raphael & Drope, Jeffrey & Labonte, Ronald, 2016. "Rhetoric and the law, or the law of rhetoric: How countries oppose novel tobacco control measures at the World Trade Organization," Social Science & Medicine, Elsevier, vol. 164(C), pages 100-107.
    8. Jennifer Cantrell & Donna M Vallone & James F Thrasher & Rebekah H Nagler & Shari P Feirman & Larry R Muenz & David Y He & Kasisomayajula Viswanath, 2013. "Impact of Tobacco-Related Health Warning Labels across Socioeconomic, Race and Ethnic Groups: Results from a Randomized Web-Based Experiment," PLOS ONE, Public Library of Science, vol. 8(1), pages 1-11, January.
    9. Philip DeCicca & Donald Kenkel & Feng Liu & Hua Wang, 2017. "Behavioral Welfare Economics and FDA Tobacco Regulations," Advances in Health Economics and Health Services Research, in: Human Capital and Health Behavior, volume 25, pages 143-179, Emerald Group Publishing Limited.
    10. Adnan M. S. Fakir & Tushar Bharati, 2021. "Healthy, nudged, and wise: Experimental evidence on the role of cost reminders in healthy decision-making," Economics Discussion / Working Papers 21-13, The University of Western Australia, Department of Economics.
    11. Crosbie, Eric, 2019. "Removing the last billboard for the tobacco industry: Tobacco standardized packaging in Ireland," Health Policy, Elsevier, vol. 123(10), pages 932-935.
    12. Marwah M. Hassounah & Abdulmohsen H. Al-Zalabani & Mohammed D. AlAhmari & Afraa A. Murriky & Anwar M. Makeen & Abdullah M.M. Alanazi, 2020. "Implementation of Cigarette Plain Packaging: Triadic Reactions of Consumers, State Officials, and Tobacco Companies—The Case of Saudi Arabia," IJERPH, MDPI, vol. 17(8), pages 1-14, April.
    13. Ellison, Brenna & Bernard, John C. & Paukett, Michelle & Toensmeyer, Ulrich C., 2016. "The influence of retail outlet and FSMA information on consumer perceptions of and willingness to pay for organic grape tomatoes," Journal of Economic Psychology, Elsevier, vol. 55(C), pages 109-119.
    14. Adnan M. S. Fakir & Tushar Bharati, 2022. "Healthy, nudged, and wise: Experimental evidence on the role of information salience in reducing tobacco intake," Health Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 1129-1166, June.
    15. Krishen, Anjala S. & Hu, Han-fen & Spivak, Andrew L. & Venger, Olesya, 2021. "The danger of flavor: E-cigarettes, social media, and the interplay of generations," Journal of Business Research, Elsevier, vol. 132(C), pages 884-896.
    16. Jeffrey E. Harris & Ana Inés Balsa & Patricia Triunfo, 2014. "Tobacco Control Campaign in Uruguay: Impact on Smoking Cessation during Pregnancy," NBER Working Papers 19878, National Bureau of Economic Research, Inc.
    17. Rousu, Matthew C. & Marette, Stéphan & Thrasher, James F. & Lusk, Jayson L., 2014. "The economic value to smokers of graphic warning labels on cigarettes: Evidence from combining market and experimental auction data," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 123-134.
    18. Ellison, Breanna & Bernard, John & Paukett, Michelle & Toensmeyer, Ulrich C., 2015. "Are All Organic Labels Treated Equally? The Influence of Retail Outlet on Consumer Perceptions of and Willingness to Pay for Organic Tomatoes," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202706, European Association of Agricultural Economists.
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