Publikationsdatum:
2016-07-09
Beschreibung:
The U.S. tobacco market has experienced a shift toward noncigarette tobacco products. We examined the degree of habit formation and the role of advertising for cigarettes, little cigars/cigarillos, large cigars, e-cigarettes, and smokeless tobacco using market-level scanner data for convenience stores from 2009 to 2013. Results based on a dynamic demand system show that while all tobacco products are habitual, e-cigarettes are the most habitual product. More choices of flavors, less restrictions on its use in public places, less documented harmful effects, and a higher upfront cost might explain the higher degree of habit formation for e-cigarettes. We also find that e-cigarettes did not substitute for or complement cigarettes. The results imply that e-cigarettes may serve as a gateway to nicotine addiction but not necessarily to cigarette smoking. Regarding advertising, cigarette magazine advertising did not affect cigarette demand, while e-cigarette TV advertising increased e-cigarette demand with a positive spillover to cigarette demand. Such results may help explain e-cigarettes’ recent success in sales and imply that e-cigarette TV advertising might undermine efforts to reduce cigarette smoking. Advertising was also found to affect the degree of habit formation for cigarettes, large cigars, and e-cigarettes.
Schlagwort(e):
D12 - Consumer Economics: Empirical Analysis, I18 - Government Policy
;
Regulation
;
Public Health, M37 - Advertising
Print ISSN:
0002-9092
Digitale ISSN:
1467-8276
Thema:
Land- und Forstwirtschaft, Gartenbau, Fischereiwirtschaft, Hauswirtschaft
,
Wirtschaftswissenschaften
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