An empirical dynamic oligopoly model of the cigarette industry is developed to study the responses of firms to various anti-smoking policies and to estimate the implications for the policy efficacy. Firms are modeled as coordinating in price and competing in advertising in a dynamic game. The...

This paper provides the first empirical study of cigarette demand using detailed individual level data that includes consumers' cigarette brand choice. By estimating and comparing the effects of advertising and price on cigarette demand for different age groups, I find that young adults are less...