ADVERTISING RESTRICTIONS AND CIGARETTE SMOKING: EVIDENCE FROM MYOPIC AND RATIONAL ADDICTION MODELS

Because of the high social cost of cigarette smoking, many countries impose advertising restrictions to reduce cigarette consumption. Yet previous studies conclude that advertising constraints have been ineffective at reducing cigarette smoking. This conclusion is incorrect because it ignores the fa...

Full description

Saved in:
Bibliographic Details
Published in:Contemporary economic policy 2006-07, Vol.24 (3), p.370-381
Main Authors: IWASAKI, NATSUKO, TREMBLAY, CAROL HORTON, TREMBLAY, VICTOR J.
Format: Article
Language:English
Subjects:
Addiction
Addictions
Advertising
Advertising restrictions
Analysis
Bans
Broadcasting industry
Business studies
Causes of
Cigarette industry
Cognitive dissonance
Consumers
Consumption
Equilibrium
Estimates
Government regulation
Health economics
Laws, regulations and rules
Liquor
National Tobacco Settlement
Outdoor advertising
Procrastination
Regulation
Regulatory policy
Smoking
Smoking bans
Social aspects
Studies
Tobacco
Tobacco industry
Tobacco products
U.S.A
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Because of the high social cost of cigarette smoking, many countries impose advertising restrictions to reduce cigarette consumption. Yet previous studies conclude that advertising constraints have been ineffective at reducing cigarette smoking. This conclusion is incorrect because it ignores the fact that advertising restrictions have supply as well as demand effects. The authors extend existing research by showing that advertising regulations, especially those found in the recent National Tobacco Settlement, have decreased the equilibrium level of cigarette consumption in the United States, a result that holds for both myopic and rational addiction models. (JEL L50, L66, M37)
ISSN:1074-3529
1465-7287
DOI:10.1093/cep/byj024