Title

Decomposing the Value of Cigarettes Using Experimental Auctions

Document Type

Article

Publication Date

1-1-2007

Department

Political Science, International Development, and International Affairs

Abstract

Using a new brand of cigarettes with less nicotine content than conventional cigarettes, we conducted experimental auctions at two grocery stores to estimate smokers' value of nicotine. Our approach is novel because the brand of cigarettes auctioned was new to the market and the cigarette's nicotine content is reduced using genetic modification, with no effect on the taste of the cigarettes. We found smokers would be willing to pay US$1.25-$1.45 for a pack of cigarettes with no nicotine and $1.59-$1.66 for a pack of cigarettes with low levels of nicotine.

Publication Title

Nicotine & Tobacco Research

Volume

9

Issue

1

First Page

93

Last Page

99