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A large literature examines the addictive properties of such behaviors as smoking, drinking alcohol and eating. We argue that for some people addictive behavior may apply to a much more central aspect of economic life: working. Workaholism is subject to the same concerns about the individual as...
Persistent link: https://www.econbiz.de/10013216889
A standard model of addictive process is Becker and Murphy's rational addiction' model, which has the key empirical … per pack of cigarettes should be at least one dollar higher under our formulation than in the rational addiction case …
Persistent link: https://www.econbiz.de/10013220522
We propose an economic theory of addiction based on the premise that cognitive mechanisms such as attention affect … neurosciencee and psychology) concerning the nature of decision-making and addiction. The model is analytically tractable, and it … accounts for a broad range of stylized facts concerning addiction. It also generates a plausible qualitative mapping from the …
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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...
Persistent link: https://www.econbiz.de/10013224693
We study competition for consumer attention in which platforms can sacrifice service quality for attention. A platform can choose the "addictiveness" of service; a more addictive platform yields consumers a lower utility of participation but a higher marginal utility of allocating attention. We...
Persistent link: https://www.econbiz.de/10013225278
Consumption of addictive goods is subject to habit formation. Forward-looking individuals must, therefore, be concerned about future prices when making current consumption decisions. We study prices for tobacco products based on a unique data set provided by the Bureau of Labor Statistics. Our...
Persistent link: https://www.econbiz.de/10013232884
addiction. In contrast to prior research, we allow individuals to make their consumption decisions simultaneous with savings and … labor supply. When addictive goods have a stronger habit formation effect (an addiction effect'), individuals choose to save … less due to the anticipated adverse health consequences of addiction (a detrimental health effect'). This is particularly …
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