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In this paper I unify the economic theories of addiction and health deficit accumulation and develop a life cycle … theory in which individuals take into account the fact that the consumption of addictive goods reduces their health and … longevity. I distinguish two types of addiction: perfect and common. Individuals with perfect addiction perfectly control their …
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This paper provides an introduction, with critical interpretations, to the use of hyperbolic discounting as a model of behavior for the consumption of addictive goods. The exponential and hyperbolic discounting models are carefully reviewed, with particular emphasis on the implications for time...
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