This paper presents a model of smoking choice in which rationality is bounded by limitations in intertemporal … computational abilities. The model is applied to the youth decision to initiate smoking. Lifetime smoking paths of representative … suggested that public policy interventions that raise the near term cost of smoking will be more effective in reducing lifetime …

Economic theories of rational addiction aim to describe consumer behavior in the presence of habit-forming goods. We … many of the unconventional behavioral assumptions employed by theories of rational addiction, including adjacent …, however, that addiction is 'harmful' only when the addict fails to implement the optimal solution. We offer evidence for the …

dominate his life. This seeming dependence on the drug has nothing to do with addiction or habit formation, but is a …

A number of studies have indicated that peer smoking is a highly influential factor in a young person's decision to …. This paper develops an econometric model of youth smoking which incorporates both peer effects and selection effects, and …