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The economic value to smokers of graphic warning labels on cigarettes: evidence from combining Mmarket and experimental auction data

Author

Listed:
  • Matthew C. Rousu

    (Department of Economics - Susquehanna University)

  • Stephan Marette

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • James F. Thrasher

    (Department of Health Promotion, Education, and Behavior - University of South Carolina [Columbia])

  • Jayson L. Lusk

    (OSU - Oklahoma State University [Stillwater])

Abstract

Many countries now require prominent pictorial health warning labels (HWLs) on the front and back of cigarette packages. In the US, pictorial HWLs have been adopted, but tobacco industry litigation has delayed their implementation. This intervention could have value to smokers, if it increases their information and changes their smoking behavior. In this paper we estimate the value of two different health warning labels for cigarette packages relative to the current US labeling policy. Our methodology does not depend on the personal values of policy makers or other individuals, as the value of information estimates we derive are based solely on smokers' own consumption choices, not any public health or other effects. We introduce an approach to valuing information with a surplus measure that couples willingness-to-pay from non-hypothetical experimental auctions with time-series revealed preference demand estimates. We find that a pictorial HWL has a large value to smokers, and a higher value than a label that only contains text, insofar as changing purchase behavior.

Suggested Citation

  • Matthew C. Rousu & Stephan Marette & James F. Thrasher & Jayson L. Lusk, 2014. "The economic value to smokers of graphic warning labels on cigarettes: evidence from combining Mmarket and experimental auction data," Post-Print hal-01173058, HAL.
    • Handle: RePEc:hal:journl:hal-01173058
    DOI: 10.1016/j.jebo.2014.09.003
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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. S. Marette & L. Nabec & F. Durieux, 2019. "Improving Nutritional Quality of Consumers’ Food Purchases With Traffic-Lights Labels: An Experimental Analysis," Journal of Consumer Policy, Springer, vol. 42(3), pages 377-395, September.
    3. Stéphan Marette & John Beghin & Anne‐Célia Disdier & Eliza Mojduszka, 2023. "Can foods produced with new plant engineering techniques succeed in the marketplace? A case study of apples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 414-435, March.
    4. Constanza De Matteu Monteiro & Rodney Feliciano & Jeanne-Marie Membré & Sara Monteiro Pires & Sofie Theresa Thomsen & Stéphan Marette, 2025. "Health impact assessment and cost‒benefit analysis: Exploring complementarities of methods to assess the impacts of regulations on food consumption," PLOS ONE, Public Library of Science, vol. 20(7), pages 1-20, July.
    5. 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.
    6. Marette, Stéphan & Martin, Christophe & Bouillot, Fabienne, 2017. "Two experiments in one: How accounting for context matters for welfare estimates," Food Policy, Elsevier, vol. 66(C), pages 12-24.
    7. Marette, Stephan, . "Quality, market mechanisms and regulation in the food chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3).
    8. Wang, Lei & Song, Chuyu & Xian, Yue & Sylvia, Sean & Rozelle, Scott, 2024. "Willingness-to-pay for early childhood development: A field experiment in Western China," China Economic Review, Elsevier, vol. 85(C).
    9. Stéphan Marette & Françoise Guéraud & Fabrice H.F. Pierre, 2021. "Regulation and Consumer Interest in an Antioxidant-Enriched Ham Associated with Reduced Colorectal Cancer Risks [Réglementation et intérêt des consommateurs pour un jambon enrichi en antioxydants associé à la réduction des risques de cancer colore," Post-Print hal-03219714, HAL.
    10. Brandyn F. Churchill, 2024. "State‐mandated school‐based BMI assessments and self‐reported adolescent health behaviors," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(1), pages 63-86, January.
    11. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    12. Castellari Elena & Marette Stéphan & Moro Daniele & Sckokai Paolo, 2019. "The Impact of Information on Willingness to Pay and Quantity Choices for Meat and Meat Substitute," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-16, May.
    13. Colombo, Luca & Galmarini, Umberto, 2023. "Taxation and anti-smoking campaigns: Complementary policies in tobacco control," Journal of Policy Modeling, Elsevier, vol. 45(1), pages 31-57.
    14. Rodríguez-Lesmes, Paul & Góngora-Salazar, Pamela & Mentzakis, Emmanouil & Buckley, Neil & Gallego, Juan Miguel & Guindon, G. Emmanuel & Martínez, Juan Pablo & Paraje, Guillermo, 2024. "Would plain packaging and health warning labels reduce smoking in the presence of informal markets? A choice experiment in Colombia," Social Science & Medicine, Elsevier, vol. 354(C).

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