Public Choice

, Volume 88, Issue 1, pp 57–67

The public demand for smoking bans

  • William J. Boyes
  • Michael L. Marlow
Article

DOI: 10.1007/BF00130409

Cite this article as:
Boyes, W.J. & Marlow, M.L. Public Choice (1996) 88: 57. doi:10.1007/BF00130409

Abstract

Smoking bans are gaining widespread support in the United States and other countries. While supporters argue that bans are necessary to resolve market failures associated with negative externalities, the Coase Theorem predicts that, under various conditions, private markets internalize negative externalities. We examine the smoking issue within the framework of the Coase Theorem and hypothesize that smoking bans misallocate air space resources shared by smokers and nonsmokers. Because smoking bans shift ownership of scarce resources, they are also hypothesized to transfer income from one party (smokers) to another party (nonsmokers). Supporting evidence for these hypotheses is provided by an examination of a comprehensive smoking ban imposed in San Luis Obispo, CA.

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • William J. Boyes
    • 1
  • Michael L. Marlow
    • 2
  1. 1.Department of EconomicsArizona State UniversityTempe
  2. 2.Department of EconomicsFlorida Atlantic UniversityBoca Raton