Change search
ReferencesLink to record
Permanent link

Direct link
Economic man and the consumption of addictive goods: the case of two goods
Umeå University, Faculty of Social Sciences, Department of Economics.
RUESG, Department of Economics, University of Helsinki, Finland.
Swedish Institute for Growth Policy Studies, Östersund, Sweden.
2006 (English)In: Substance Use & Misuse, ISSN 1082-6084, E-ISSN 1532-2491, Vol. 41, 453-466 p.Article in journal (Refereed) Published
Abstract [en]

It is well known that cigarette smoking and the use of other addictive goods is harmful to health. Still, some people smoke cigarettes and drink alcohol in their daily lives. The consumption of addictive goods seems, therefore, to be the antithesis of rational behavior. In this article, however, it is demonstrated that a rational individual, in the sense that he or she maximizes his or her well-being while anticipating the future consequences of his or her choices, may in fact choose to consume addictive goods. Specifically, the two-good extension of the rational addiction model is demonstrated and related to relevant policy questions. For instance, should one encourage the use of smokeless tobacco in smoking cessation programs? According to the empirical results, the answer is no. Further, should one discourage smoking by increasing the tax on cigarettes? Again, the answer is no.

Place, publisher, year, edition, pages
New York: Dekker , 2006. Vol. 41, 453-466 p.
Keyword [en]
alcohol, bootlegging, cigarette smoking, complements, craving, demand, elasticity, habit stock, myopic behavior, rational addiction, relapse, satisfaction, substitutes, tolerance, utility
National Category
Research subject
URN: urn:nbn:se:umu:diva-26751DOI: 10.1080/10826080500522019OAI: diva2:273746
Available from: 2009-10-23 Created: 2009-10-23 Last updated: 2011-06-22Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text
By organisation
Department of Economics
In the same journal
Substance Use & Misuse

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 81 hits
ReferencesLink to record
Permanent link

Direct link