To test a model of rational addiction, the authors examine whether lower past and future prices for cigarettes raise current cigarette consumption. The empirical results tend to support the implication of addictive behavior that cross-price effects are negative and that long-run responses exceed...

The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include human investments, so that diminishing returns to capital set in slowly, and if differences in government policies or other variables create substantial differences in...

The market for ski runs or amusement rides often features admission tickets with no explicit price per ride. Therefore, the equilibrium i nvolves queues, which are systematically longer during peak periods s uch as weekends. Moreover, the prices of admission tickets are much l ess responsive...