Response to Health Information: Evidence from Cigarette Consumption and Intake of Nicotine and Tar in Japan

Junmin Wan ()

No 04-12, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper introduces a new way to examine the effects of mandatory information disclosure on inter-brand cigarette demands and the behavior of a monopolistic firm in Japan. I estimated inter-brand demands by including nicotine, tar content, and policy event information in the model and by using cigarette brand sales data. I found that the mandatory disclosure of nicotine and tar content information decreased the intake of nicotine and tar per capita and per smoker; thus mandatory disclosure is likely to increase consumers f welfare, if we suppose that they always choose their favorite cigarette. Furthermore, I found that the monopolistic firm supplied more, new, and better quality products, discontinued the production of poorer quality goods, and conducted more R & D, in response to disclosure mandates.

Keywords: Rational addiction; Smoking; Health information; Tobacco control (search for similar items in EconPapers)
JEL-codes: D11 D12 I18 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2004-06
New Economics Papers: this item is included in nep-hea and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:04-12

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