Bask, Mikael; Melkersson, Maria - Institutionen för Nationalekonomi, Umeå Universitet - 2001
When modeling demand for addictive consumption goods, the most widely used framework is the rational addiction model … proposed by Becker and Murphy (1988). In the present paper, we extend the rational addiction model to include two addictive …. It is found that alcohol demand is quite well described by the rational addiction model while the same is not true for …