Smoking Bans in the Presence of Social Interaction
This paper analyzes the welfare effects of a public smoking ban in bars. We construct a model that captures crucial features of bar life: competing bars, social interaction, and heterogenous preferences for a smoking ban. Smokers and non-smokers simultaneously choose a bar given their preferences for meeting other people. Bars anticipate the behavior of individuals and choose the smoking regime strategically. Since the (dis)utility from smoking and social interaction are substitutes, the smoking regime is a stronger coordination device if the disutility from smoking is large. If all bars allow smoking in equilibrium, a public smoking ban enhances welfare.
|Date of creation:||04 May 2009|
|Contact details of provider:|| Postal: Ludwigstr. 28, 80539 Munich, Germany|
Web page: http://www.vwl.uni-muenchen.de
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- Boyes, William J & Marlow, Michael L, 1996. "The Public Demand for Smoking Bans," Public Choice, Springer, vol. 88(1-2), pages 57-67, July.
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- John Dunham & Michael Marlow, 2003. "The economic incidence of smoking laws," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1935-1942.
- Christian Bauer & Jörg Lingens, 2008. "The Strategic Effects of Smoking Bans," Working Papers 055, Bavarian Graduate Program in Economics (BGPE). Full references (including those not matched with items on IDEAS)
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