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Interpreting the rational addiction model

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  • Brian S. Ferguson

Abstract

The rational addiction (RA) model of Becker and Murphy (Becker GS, Murphy KM. A theory of rational addiction. J Pol Econ 1988; 96(4): 675–700) has rapidly become one of the standard models in the literature on addictive behaviour. This paper reviews some theoretical issues surrounding its use, and indicates areas in which caution should be used in applying this model. Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • Brian S. Ferguson, 2000. "Interpreting the rational addiction model," Health Economics, John Wiley & Sons, Ltd., vol. 9(7), pages 587-598, October.
    • Handle: RePEc:wly:hlthec:v:9:y:2000:i:7:p:587-598
    DOI: 10.1002/1099-1050(200010)9:7<587::AID-HEC538>3.0.CO;2-J
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    References listed on IDEAS

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    1. Ippolito, Pauline M, 1981. "Information and the Life Cycle Consumption of Hazardous Goods," Economic Inquiry, Western Economic Association International, vol. 19(4), pages 529-558, October.
    2. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586, Enero-Abr.
    3. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-241, May.
    4. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    5. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, vol. 84(3), pages 396-418, June.
    6. Olekalns, Nilss & Bardsley, Peter, 1996. "Rational Addiction to Caffeine: An Analysis of Coffee Consumption," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1100-1104, October.
    7. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-241, May.
    8. Keeler, Theodore E. & Hu, Teh-Wei & Barnett, Paul G. & Manning, Williard G., 1993. "Taxation, regulation, and addiction: A demand function for cigarettes based on time-series evidence," Journal of Health Economics, Elsevier, vol. 12(1), pages 1-18, April.
    9. Grossman, Michael & Chaloupka, Frank J & Sirtalan, Ismail, 1998. "An Empirical Analysis of Alcohol Addiction: Results from the Monitoring the Future Panels," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 39-48, January.
    10. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
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    Cited by:

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    2. Badi H. Baltagi & Ingo Geishecker, 2006. "Rational alcohol addiction: evidence from the Russian longitudinal monitoring survey," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 893-914, September.
    3. Auld, M. Christopher & Grootendorst, Paul, 2004. "An empirical analysis of milk addiction," Journal of Health Economics, Elsevier, vol. 23(6), pages 1117-1133, November.
    4. Henry Shelton Brown & Steve Karson, 2013. "Cigarette Quitlines, Taxes, And Other Tobacco Control Policies: A State‐Level Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 22(6), pages 741-748, June.
    5. Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, May.
    6. Kristian Bolin & Michael R. Caputo, 2024. "Specification of the health production function and its behavioral implications," Health Economics, John Wiley & Sons, Ltd., vol. 33(11), pages 2671-2684, November.
    7. Julian Reif, 2019. "A Model Of Addiction And Social Interactions," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 759-773, April.
    8. Yaniv, Gideon, 2011. "Workaholism and marital estrangement: A rational-choice perspective," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 104-108, March.
    9. Ole Rogeberg, 2003. "Preferences, Rationality and Welfare in Becker's Extended Utility Approach," Rationality and Society, , vol. 15(3), pages 283-323, August.
    10. Jon P. Nelson, 2010. "What is Learned from Longitudinal Studies of Advertising and Youth Drinking and Smoking? A Critical Assessment," IJERPH, MDPI, vol. 7(3), pages 1-57, March.
    11. Reiner Hanewinkel & Christian Radden & Tobias Rosenkranz, 2008. "Price increase causes fewer sales of factory‐made cigarettes and higher sales of cheaper loose tobacco in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 683-693, June.
    12. Yaniv, Gideon, 2008. "Obsessive-compulsive disorder and behavioral therapy: A rational-choice perspective," Mathematical Social Sciences, Elsevier, vol. 55(3), pages 405-415, May.
    13. Laporte, Audrey & Dass, Adrian Rohit & Ferguson, Brian S., 2017. "Is the Rational Addiction model inherently impossible to estimate?," Journal of Health Economics, Elsevier, vol. 54(C), pages 161-175.
    14. Brosio, Giorgio & Zanola, Roberto, 2006. "Can violence be rational? An empirical analysis of Colombia," POLIS Working Papers 74, Institute of Public Policy and Public Choice - POLIS.
    15. Badi H. Baltagi & James M. Griffin, 2002. "Rational addiction to alcohol: panel data analysis of liquor consumption," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 485-491, September.

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