Advertisement

The Market and Rational Decisions

  • John Joshua
Chapter
  • 488 Downloads

Abstract

The present consumption of addictive goods depends on past as well as future consumption. As smokers usually persist in their smoking activities because of their addiction, their decision to smoke has little to do with freedom of choice. Instead, smokers may show a lack of freedom of choice as they feel compelled to smoke to satisfy their irresistible urge to smoke and so do not have the freedom not to smoke.Furthermore, free choice cannot be exercised within a distorted market when the relevant information is not available, so that an informed decision cannot be made, and hence the decision-making process cannot be optimized.

Keywords

Addictive goods Distorted market Freedom of choice 

References

  1. Akerlof, G. A. (1991). Procrastination and obedience. The American Economic Review, 81(2), 1–19.Google Scholar
  2. Akerlof, G. A., & Dickens, W. T. (1982). The economic consequences of cognitive dissonance. American Economic Review, 72(3), 307–319.Google Scholar
  3. Becker, G. S., & Murphy, K. M. (1988). A theory of rational addiction. Journal of Political Economy, 98(4), 675–700.CrossRefGoogle Scholar
  4. Becker, G. S., Grossman, M. et al. (1994). An empirical analysis of cigarette addiction. American Economic Review, 84(3), 396–418.Google Scholar
  5. Becker, G., Grossman, M. et al. (1991). Rational addiction and the effect of price consumption. American Economic Review, 81(2), 237–241.Google Scholar
  6. Chaloupka, F. J. (1991). Rational addictive behaviour and cigarette smoking. Journal of Political Economy, 99(4), 722–742.CrossRefGoogle Scholar
  7. Fong, G., Hammond, D. et al. (2004). Near-universal experience of regret among smokers in four countries. Nicotine Tobacco Research, 6(Suppl. 3), S341–S351.CrossRefGoogle Scholar
  8. Gruber, J., & Koszegi, B. (2001). Is addiction rational? Theory and evidence. Quarterly Journal of Economics, 116(4), 99. 1261–1304.CrossRefGoogle Scholar
  9. McGarity, T. O., Kysar, D. A. et al. (2006). The truth about torts: Lawyers, guns, and money. July, 2006. CPR White Paper #603. Washington, DC: A Center for Progressive Reform Publication.Google Scholar
  10. Mills, J. S. (1970 [1859]). On liberty, in utilitarianism, on liberty, essays on Bentham. M. Warnock (Ed.). (pp. 126–250). London: Collins: The Fontana Library – Philosophy.Google Scholar
  11. Proctor, R. N. (2013). Why ban the sale of cigarettes? The case for abolition. Tobacco Control, 22(Suppl. 1), i27–i30.CrossRefGoogle Scholar
  12. Yuengert, A. M. (2001). Rational choice with passion: Virtue in a Model of rational addiction. Review of Social Economy, 59(1), 1–21.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • John Joshua
    • 1
  1. 1.Deakin UniversityMelbourneAustralia

Personalised recommendations