Addiction in networks

Frédéric Deroïan () and Philippine Escudie ()
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Frédéric Deroïan: Aix-Marseille Univ., CNRS, AMSE, Marseille, https://www.amse-aixmarseille.fr/en/members/dero%C3%AFan
Philippine Escudie: Aix-Marseille Univ., CNRS, AMSE, Marseille, https://www.amse-aixmarseille.fr/en/members/escudie
Authors registered in the RePEc Author Service: Roberta Ziparo

No 2506, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper develops a dynamic model of addiction on networks, where individuals’ consumption is shaped by peer influence. We analyze the longrun effects of social interactions by characterizing steady-state consumption as a function of both network position and forward-looking behavior. We also examine the welfare implications of network structure and evaluate the effectiveness of various public policies aimed at reducing the demand for addictive goods. In particular, we study a key-player policy—modeled as a targeted rehabilitation program—that leverages the network’s interpersonal influences to maximize impact.

Keywords: Addiction; Peer Network; rational addiction, time-inconsistency (search for similar items in EconPapers)
JEL-codes: C72 D83 D85 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2025-03
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:2506

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