Smoking Behavior and Rank-Dependent Expected-Uitility
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.
Volume (Year): 142 (2006)
Issue (Month): II (June)
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- Zweifel, Peter, 2001. " Improved Risk Information, the Demand for Cigarettes, and Anti-tobacco Policy," Journal of Risk and Uncertainty, Springer, vol. 23(3), pages 299-303, November.
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