Although cigarette producers knew that nicotine was addictive in the early 1960's, this information was not publicly known until the 1979 Surgeon General's Report. This study finds that the release of addiction information caused a structural shift in cigarette demand and estimates the value of...

Although cigarette manufacturers were aware of the addictive properties of nicotine as early as 1962, the information did not become available to the U.S. public until 1979 when the Surgeon General disclosed it. This study simulates the impact that this information would have had on the demand...

We conduct cusum tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state-level data. In contrast to the one previous application of cusum tests to the question of cigarette demand stability, our results provide strong...

A 1979 U.S. Surgeon General's report provided the first conclusive public information of nicotine's addictive effects. We test the hypothesis that cigarette demand was of a "myopic" nature prior to 1979, but forward-looking, or "rational," thereafter.

This paper addresses the problem of measuring the value of information to an agent in an environment where the agent is risk averse and choices are base on the utility of income and personal beliefs about the likelihood of uncertain outcomes

The theory of the competitive firm under price uncertainty is used to develop a money metric of a producer's willingness to pay for additional information. For a restricted class of utility functions, empirical estimates of the money using secondary data can be derived from the firm's risk...

The theory of the competitive firm under price uncertainty is used to develop a money metric of a producer's willingness to pay for additional information. This concept is extended to the market by formulating ex-ante and ex-post measures of the value of a rational expectations forecast. The...

This study estimates a hedonic price equation to assess consumers' willingness-to-pay for reduction in pesticide residues in fifteen fruits and vegetables. A unique feature of the study is its employment of the FDA's Total Diet Study data which attempts to measure actual pesticide ingestion by...