There is enormous literature on the determinants of consumption of cigarettes and other tobacco products, and on the magnitude of the impact of a wide variety of economic and noneconomic factors. Also, a huge amount of research has been done on the association between income inequality and...

This paper adds to two strands of the economics literature, the literature on product durability and on technical change, in a small way by introducing the possibility that an uncertain invention may be exogenously durable. Durability makes otherwise fully appropriable innovation porous. We...

Socially optimal cost-reducing R&D with product durability is studied. Results show that the first period optimal R&D and output with durability exceed the respective levels without durability. The second period R&D and output are identical to the no durability case.

Using state-level data for the United States, this study uniquely examines the effects of cigarette prices and income on seven dimensions of smoking behaviour. Results show that income-based policies are relatively more effective than price- or tax-based policies. Smokers considering quitting...

The paper studies the effect of price-cap regulation on the research behaviour of a regulated firm and an external developer who are pursuing an uncertain innovation. Contributions of this work include incorporating innovation uncertainty and imperfect appropriability of innovation rewards into...

This article uses state-level US panel data to examine the effects of cigarette advertising on smoking. We disaggregate cigarette advertising into (1) print, (2) outdoor, (3) entertainment and (4) store. How does advertising persist over time across advertising media? Are there differences in...

This paper examines the effectiveness of Pigovian taxation in checking the behaviour of a durable goods monopolist who generates some externality in the production process. The durable good lasts two periods. It is found that while the effect of an increase in the tax is to lower the first...

Socially optimal cost-reducing R&D with product durability is studied. Results show that the first period optimal R&D and output with durability exceed the respective levels without durability. The second period R&D and output are identical to the no durability case.

This paper examines auctions of incentive contracts, where the principal (a government agency) contracts with a private vendor to supply a given quantity. The contract is incomplete as the agent's research behaviour is unobservable and is not in the principal's objective function. The agent,...

This paper uses a simple two-period model to examine the behaviour of a monopolist who produces a durable good and engages in advertising that is also somewhat durable. It is found that changes in product durability and advertising durability have opposite effects on profit-maximizing output and...