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Smoking and social interaction

Author

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  • Poutvaara, Panu
  • Siemers, Lars-H. R.

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 in their midst to stop smoking, even though the disutility from smoking exceeds the utility from social interaction. Overall, the level of smoking is inefficient when tolerating 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 (second-best) policy.

Suggested Citation

  • Poutvaara, Panu & Siemers, Lars-H. R., 2008. "Smoking and social interaction," Journal of Health Economics, Elsevier, vol. 27(6), pages 1503-1515, December.
  • Handle: RePEc:eee:jhecon:v:27:y:2008:i:6:p:1503-1515
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    2. Jaume García-Villar & Ángel López-Nicolás, 2015. "Who is afraid of smoking bans? An evaluation of the effects of the Spanish clean air law on expenditure at hospitality venues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(8), pages 813-834, November.
    3. Aitor Calo-Blanco, 2015. "Health, responsibility and taxation with a fresh start," Working Papers 15.06, Universidad Pablo de Olavide, Department of Economics.
    4. Annette Hofmann & Martin Nell, 2012. "Smoking bans and the secondhand smoking problem: an economic analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 227-236, June.
    5. Sergio Currarini, & Elena Fumagalli & Fabrizio Panebianco, 2012. "Games on Networks: Direct Complements and Indirect Substitutes," Discussion Papers in Economics 13/04, Division of Economics, School of Business, University of Leicester.
    6. Bauer, Christian & Lingens, Jörg, 2009. "Smoking Bans in the Presence of Social Interaction," Discussion Papers in Economics 10593, University of Munich, Department of Economics.
    7. Rebekka Christopoulou & Ahmed Jaber & Dean R. Lillard, 2013. "The Inter-generational and Social Transmission of Cultural Traits: Theory and Evidence from Smoking Behavior," NBER Working Papers 19304, National Bureau of Economic Research, Inc.
    8. Dimitrios Christelis & Anna Sanz-de-Galdeano, 2009. "Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity," CSEF Working Papers 236, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    9. Kvasnicka, Michael & Tauchmann, Harald, 2010. "Eine Befragung von Gastronomiebetrieben zur Einführung von Rauchverboten: Deskriptive Ergebnisse," RWI Materialien 58, RWI - Leibniz-Institut für Wirtschaftsforschung.
    10. Christelis, Dimitris & Sanz-de-Galdeano, Anna, 2011. "Smoking persistence across countries: A panel data analysis," Journal of Health Economics, Elsevier, vol. 30(5), pages 1077-1093.
    11. Strulik, Holger, 2020. "Opioid epidemics," Economics & Human Biology, Elsevier, vol. 37(C).
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    14. Ángel Luis López & Arántzazu Viudes de Velasco, 2008. "El Control del Tabaquismo desde la Perspectiva de la Economía," Economic Reports 27-08, FEDEA.

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    More about this item

    Keywords

    Smoking policy Health Social norms Guilt aversion Social interaction;

    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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