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Rational addiction and the demand for cinema

Samuel Cameron ()

Applied Economics Letters, 1999, vol. 6, issue 9, 617-620

Abstract: This paper estimates Becker's rational addiction model using a demand for cinema equation. The results do not seem to be strongly supportive of the rational addiction model. As in Becker, Murphy, Grossman we find a significant coefficient on the lead consumption term and a quite plausible discount rate in OLS estimation with significant price effects. However the IV estimates preferred by Becker et al. fails to give support for any elements of the model.

Date: 1999
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DOI: 10.1080/135048599352736

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