influence each other in their decision to consume an addictive good. An agent's decision is sensitive to her state of addiction … opposite effect. Furthermore, I explore the effect of networks on diffusion of addiction and, using simulations, find that … addiction spreads faster in an environment where there are few strong links than in one with many weak links. …

We characterize dynamic rational addiction to a harmful product by an informed individual who is connected to a network … individual particularly prone to addiction, who may also abstain from the product, a network contributing to the individual …, or reducing the network's consumption) can prevent addiction if implemented early enough along the individual's optimal …