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Firm behavior in a legal market with addiction: implications from a demand with social interactions

Le comportement des producteurs de biens addictifs légaux: implications d'une demande avec interactions sociales

Sophie Massin

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This article analyzes the behavior of a producer of a legal addictive good (tobacco, alcohol or gambling) facing a demand with social interactions, especially a deterrence effect of heavy use on initiation. We simulate an epidemic model to estimate at what conditions it could be interesting for him to act responsibly, which means to reduce the escalation rate (from light use to heavy use). We draw conclusions in terms of the debate on corporate social responsibility discourse/practice in a neoclassical perspective.

Keywords: firm behavior; addiction; social interactions; CSR; dynamic simulation; comportement du producteur; interactions sociales; RSE; simulation dynamique (search for similar items in EconPapers)
Date: 2009-04
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00375546v1
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Published in 2009

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Working Paper: Firm behavior in a legal market with addiction: implications from a demand with social interactions (2009) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00375546

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