Work

Mostly Harmless Regulation? Electronic Cigarettes, Public Policy and Consumer Welfare

Year: 2017

Type: report

Abstract: Electronic cigarettes are a less harmful alternative to combustible cigarettes.We analyze data on e-cigarette choices in an online experimental market.Our data and mixed logit model capture two sources of consumer optimization errors: over-estimates of the relative risks of e-cigarettes; and present bias.Our novel data and policy analysis make three contributions.First, our predictions about e-cigarette use under counter-factual policy scenarios provide new information about current regulatory tradeoffs.Second, we provide empirical evidence about the role consumer optimization errors play in tobacco product choices.Third, we contribute to behavioral welfare analysis of policies that address individual optimization errors.

Source: National Bureau of Economic Research

DOI: 10.3386/w23710

Authors: Donald Kenkel, Sida Peng, Michael Pesko, Hua Wang

Institutions: National Bureau of Economic Research, Cornell University, New York State University College of Human Ecology

Language: English

Topic: Smoking Behavior and Cessation

Subfield: Physiology

Field: Medicine

Domain: Health Sciences

SDG: Good health and well-being

Open Access status: green

Funders: National Institutes of Health, University of Illinois at Urbana-Champaign, Weill Cornell Medical College