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Response to Health Information: Evidence from Cigarette Consumption and Intake of Nicotine and Tar in Japan

Listed author(s):
  • Junmin Wan


    (Institute of Social and Economic Research, Osaka University)

Registered author(s):

    This paper introduces a new way to examine the effects of mandatory information disclosure on inter-brand cigarette demands and the behavior of a monopolistic firm in Japan. I estimated inter-brand demands by including nicotine, tar content, and policy event information in the model and by using cigarette brand sales data. I found that the mandatory disclosure of nicotine and tar content information decreased the intake of nicotine and tar per capita and per smoker; thus mandatory disclosure is likely to increase consumers f welfare, if we suppose that they always choose their favorite cigarette. Furthermore, I found that the monopolistic firm supplied more, new, and better quality products, discontinued the production of poorer quality goods, and conducted more R & D, in response to disclosure mandates.

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    Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 04-12.

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    Length: 23 pages
    Date of creation: Jun 2004
    Handle: RePEc:osk:wpaper:04-12
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