Sung, Hai-Yen; Hu, Teh-Wei; Theodore E. Keeler. - Department of Economics, University of California-Berkeley - 1992
This paper presents a rational addiction model, which integrates the addictive behavior of smokers toward cigarette consumption and the dynamic, profit-maximizing behavior of an oligopoly of cigarette producers. This model is tested on a panel data for eleven western states over the period of...