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Cigarettes and Addiction Information: New Evidence in Support of the Rational Addiction Model

Author

Listed:
  • Fenn, Aju J.
  • Antonovitz, Frances A.
  • Schroeter, John R.

Abstract

A 1979 U.S. Surgeon General's report provided the first conclusive public information of nicotine's addictive effects. We test the hypothesis that cigarette demand was of a "myopic" nature prior to 1979, but forward-looking, or "rational," thereafter.

Suggested Citation

  • Fenn, Aju J. & Antonovitz, Frances A. & Schroeter, John R., 2001. "Cigarettes and Addiction Information: New Evidence in Support of the Rational Addiction Model," Staff General Research Papers Archive 5117, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:5117
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    References listed on IDEAS

    as
    1. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    2. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, pages 396-418.
    3. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, pages 675-700.
    4. Wooldridge, Jeffrey M., 1990. "A note on the Lagrange multiplier and F-statistics for two stage least squares regressions," Economics Letters, Elsevier, vol. 34(2), pages 151-155, October.
    5. Showalter, Mark H., 1999. "Firm behavior in a market with addiction: the case of cigarettes," Journal of Health Economics, Elsevier, vol. 18(4), pages 409-427, August.
    6. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, pages 396-418.
    7. Winston, Gordon C., 1980. "Addiction and backsliding : A theory of compulsive consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 1(4), pages 295-324, December.
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    Cited by:

    1. 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.
    2. John Schroeter & Aju Fenn, 2005. "Structural change in cigarette demand: cusum tests using panel data," Economics Bulletin, AccessEcon, vol. 9(8), pages 1-11.
    3. Martyn Duffy, 2006. "Tobacco consumption and policy in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1235-1257.
    4. Zaifu Yang & Rong Zhang, 2014. "Rational Addictive Behavior under Uncertainty," Discussion Papers 14/12, Department of Economics, University of York.
    5. Jay Shimshack, 2004. "Are Mercury Advisories Effective? Inofrmation, Education, and Fish Consumption," Discussion Papers Series, Department of Economics, Tufts University 0423, Department of Economics, Tufts University.
    6. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, pages 44-62.
    7. Bennear, Lori S. & Olmstead, Sheila M., 2008. "The impacts of the "right to know": Information disclosure and the violation of drinking water standards," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 117-130, September.
    8. repec:ebl:ecbull:v:9:y:2005:i:8:p:1-11 is not listed on IDEAS
    9. Aju Fenn & John Schroeter, 2004. "Cigarettes and addiction information: simulating the demand effects of the tobacco industry's 'conspiracy of silence'," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2151-2159.
    10. Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, pages 158-179.
    11. Toro-Gonzalez, Daniel & McCluskey, Jill J. & Mittelhammer, Ron, 2014. "Beer Snobs Do Exist: Estimation of Beer Demand by Type," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), August.
    12. Craig A. Gallet, 2006. "Health information and cigarette consumption: supply and spatial considerations," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, pages 35-47.
    13. Pierpaolo Pierani & Silvia Tiezzi, 2009. "Addiction and interaction between alcohol and tobacco consumption," Empirical Economics, Springer, pages 1-23.
    14. Hammar, Henrik & Martinsson, Peter, 2001. "The Effect Of Cigarette Prices And Antismoking Policies On The Age Of Smoking Initiation," Working Papers in Economics 62, University of Gothenburg, Department of Economics.
    15. Sloan, Frank A. & Smith, V. Kerry & Taylor, Donald Jr., 2002. "Information, addiction, and 'bad choices': lessons from a century of cigarettes," Economics Letters, Elsevier, vol. 77(2), pages 147-155, October.
    16. Yi-Chi Chen & Chang-Ching Lin, 2010. "Threshold Effects in Cigarette Addiction: An Application of the Threshold Model in Dynamic Panels," Economics Bulletin, AccessEcon, vol. 30(4), pages 3128-3142.
    17. Junmin Wan, 2004. "Cigarette Tax Revenues and Tobacco Control in Japan," Discussion Papers in Economics and Business 04-11-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Feb 2006.

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