After a discussion of cigarette smoking in the context of the Becker-Murphy (1988) model of rational addictive behavior, demand equations are derived accounting for the tolerance, reinforcement, and withdrawal characteristic of addictive consumption. These are contrasted to equations developed...

We conduct a randomized field experiment to quantify biases that affect consumers of addictive goods: present-biased preferences, naïve beliefs regarding present bias, and projection-biased beliefs over future abstinence. These biases reflect departures from the neoclassical benchmark needed to...

After a discussion of cigarette smoking in the context of the Becker-Murphy (1988) model of rational addictive behavior, demand equations are derived accounting for the tolerance, reinforcement, and withdrawal characteristic of addictive consumption. These are contrasted to equations developed...