In this paper I unify the economic theories of addiction and health deficit accumulation and develop a life cycle … longevity. I distinguish two types of addiction: perfect and common. Individuals with perfect addiction perfectly control their … addiction. Individuals with common addiction, though otherwise rational and forward looking, fail to fully understand how their …

A standard model of addictive process is Becker and Murphy's rational addiction' model, which has the key empirical … the inconsistent preferences which are likely to provide a much better platform for understanding the smoking decision. We … per pack of cigarettes should be at least one dollar higher under our formulation than in the rational addiction case …

reducing teenage cigarette consumption if they credibly alter individuals' beliefs about future prices …

We use a framework suggested by a model of rational addiction to analyze empirically the demand for cigarettes. The … results provide support for the implications of a rational addiction model that cross price effects are negative (consumption … estimates illustrate the importance of the intertemporal linkages in cigarette demand implied by rational addictive behavior …

reducing teenage cigarette consumption if they credibly alter individuals' beliefs about future prices …