When health policy and empirical evidence collide: The case of cigarette package warning labels and economic consumer surplus

A.V. Song, P. Brown and S.A. Glantz

American Journal of Public Health, 2014, vol. 104, issue 2, e42-e51

Abstract: In its graphic warning label regulations on cigarette packages, the Food and Drug Administration severely discounts the benefits of reduced smoking because of the lost "pleasure" smokers experience when they stop smoking; this is quantified as lost "consumer surplus." Consumer surplus is grounded in rational choice theory. However, empirical evidence from psychological cognitive science and behavioral economics demonstrates that the assumptions of rational choice are inconsistent with complex multidimensional decisions, particularly smoking. Rational choice does not account for the roles of emotions, misperceptions, optimistic bias, regret, and cognitive inefficiency that are germane to smoking, particularly because most smokers begin smoking in their youth. Continued application of a consumer surplus discount will undermine sensible policies to reduce tobacco use and other policies to promote public health.

Keywords: article; decision making; emotion; empirical research; food and drug administration; health care policy; human; legal aspect; packaging; psychological aspect; risk factor; smoking; tobacco; tobacco dependence; United States, Choice Behavior; Emotions; Empirical Research; Health Policy; Humans; Product Packaging; Risk Factors; Smoking; Tobacco Products; Tobacco Use Disorder; United States; United States Food and Drug Administration (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:aph:ajpbhl:10.2105/ajph.2013.301737_3

DOI: 10.2105/AJPH.2013.301737

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