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A Survey of Economic Models of Addictive Behavior

A Survey of Economic Models of Addictive Behavior
Author: Michael Grossman
Publisher:
Total Pages: 13
Release: 2013
Genre:
ISBN:

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In economic analyses of addictive behavior, the consumption of a certain good is termed to be an addiction if an increase in past consumption of the good leads to an increase in current consumption. From policy, legal, and public health perspectives, addictive goods are of interest because the consumption of many of these goods harms the consumer and others.


Choice, Behavioural Economics and Addiction

Choice, Behavioural Economics and Addiction
Author: Nick Heather
Publisher: Elsevier
Total Pages: 459
Release: 2003-11-13
Genre: Psychology
ISBN: 0080501109

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Choice, Behavioural Economics and Addiction is about the theory, data, and applied implications of choice-based models of substance use and addiction. The distinction between substance use and addiction is important, because many individuals use substances but are not also addicted to them. The behavioural economic perspective has made contributions to the analysis of both of these phenomena and, while the major focus of the book is on theories of addiction, it is necessary also to consider the behavioural economic account of substance use in order to place the theories in their proper context and provide full coverage of the contribution of behavioural economics to this field of study. The book discusses the four major theories of addiction that have been developed in the area of economic science/behavioural economics. They are: • hyperbolic discounting • melioration • relative addiction • rational addiction The main objective of the book is to popularise these ideas among addiction researchers, academics and practitioners. The specific aims are to articulate the shared and distinctive elements of these four theories, to present and discuss the latest empirical work on substance abuse and addiction that is being conducted in this area, and to articulate a range of applied implications of this body of work for clinical, public health and public policy initiatives. The book is based on an invitation-only conference entitled, Choice, Behavioural Economics and Addiction: Theory, Evidence and Applications held at the University of Alabama at Birmingham, March 30 - April 1, 2001. The conference was attended by prominent scientists and scholars, representing a range of disciplines concerned with theories of addiction and their consequences for policy and practice. The papers in the book are based on the papers given at the above conference, together with commentaries by distinguished experts and, in many cases, replies to these comments by the presenters.


Consumer Behaviour. Does Rational Addiction Exist?

Consumer Behaviour. Does Rational Addiction Exist?
Author: Lukas Dauner
Publisher: GRIN Verlag
Total Pages: 28
Release: 2018-03-27
Genre: Business & Economics
ISBN: 3668671206

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Seminar paper from the year 2018 in the subject Economy - Health Economics, grade: 1,0, University of Hohenheim (Institut für Health Care & Public Management), language: English, abstract: It is proposed by Gary S. Becker and Kevin M. Murphy that addictive behavior could be usefully integrated in the rational choice framework. According to their theory, consumers are forward-looking in their decision making and calculate present and future consequences of consuming an addictive good. Becker and Murphy even claim that analyzing addictions as a rational choice offers new insights and a better understanding of addiction. Earlier economic models typically explain addictions with irrational or myopic behavior in which individuals ignore or highly discount the future when making their decisions. While the rational addiction model has become a standard tool in the economic analysis of addictive behavior, it has also been subject to much criticism. As shown in this paper, there is much evidence that model’s assumptions are unrealistic. It is argued however that the model’s predictions rather than its assumptions should be rejected based on the empirical evidence. By reviewing empirical studies which tested the Becker Murphy model, this paper seeks to examine to what extent the rational choice approach can be legitimately applied to addictive behavior. The model’s assumptions and implications will be explained. later, the main criticisms about the theory will be discussed. After that, the most relevant studies and their implications will be reviewed.


Behavioral Economics, Neurophysiology, Addiction and the Law

Behavioral Economics, Neurophysiology, Addiction and the Law
Author: Michael Louis Corrado
Publisher:
Total Pages: 0
Release: 2010
Genre:
ISBN:

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Has science anything to tell us about responsibility? Addiction is a particularly interesting test case. Two fields of science, behavioral economics and neurophysiology have lately given us a great deal of information about addiction, much of which may be useful to the law. When it comes to addiction, unfortunately, the two fields seem to point in opposite directions. Economics has provided us with models of addictive behavior based upon the supposition that addiction is the result of choice, a development that appears to support the conclusion that addictive behavior is not the product of "non-volitional forces." If addictive behavior can be fully accounted for in terms of the addict's choices, and if there is no need to postulate the existence of forces overwhelming the addict's will, is there any reason not to hold the addict fully responsible for what he does? Neurophysiology, on the other hand, has demonstrated that substance abuse causes significant changes in brain physiology, which appears to support the conclusion that addiction is a disease. If addiction corresponds to physical changes in the nervous system, then addiction is a disease, and addictive behavior is merely a symptom of the disease. We may be responsible for contracting a disease, but can we be held responsible for the symptoms once we have it? Science does have a good many things to tell us about addiction, but so far whether or not the addict is responsible for what he does is not among them. The fact that choice theories - rational addiction, behavioral economics - can develop models in which addiction is the result of choice should not surprise us: Did anyone ever believe that addicts did not intend to do what they were doing? Did anyone ever believe that addicts did not choose to do what they did? The question has always been whether those choices were free, and whether the addict was fully in control of his choices. That is the question that the law must deal with, and in this paper I argue that choice theories have nothing to say to that question. Neurophysiology, on the other hand, has made remarkable strides in tracing down the effects of heavy drug use on the brain. But that behavior should effect brain changes is not by itself remarkable, and does not entail that behavior is not fully voluntary. There are three possible conclusions. The first is that although science has yielded no results so far, we may hope for results in the future. The general nature of the arguments against drawing conclusions about responsibility from the existing literature makes that, if not entirely a vain hope, at least implausible. The second is that responsibility is simply one of the areas of human experience that is cut off from science; there must, therefore, be other ways of knowing what we do about addiction, control, and responsibility. And the third conclusion may be the most pessimistic of all, namely that responsibility itself is a confused notion, and that we should be skeptical about its role in the law.


Addiction

Addiction
Author: Gene M. Heyman
Publisher: Harvard University Press
Total Pages: 213
Release: 2010-10-15
Genre: Psychology
ISBN: 0674057279

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In a book sure to inspire controversy, Gene Heyman argues that conventional wisdom about addictionÑthat it is a disease, a compulsion beyond conscious controlÑis wrong. Drawing on psychiatric epidemiology, addictsÕ autobiographies, treatment studies, and advances in behavioral economics, Heyman makes a powerful case that addiction is voluntary. He shows that drug use, like all choices, is influenced by preferences and goals. But just as there are successful dieters, there are successful ex-addicts. In fact, addiction is the psychiatric disorder with the highest rate of recovery. But what ends an addiction? At the heart of HeymanÕs analysis is a startling view of choice and motivation that applies to all choices, not just the choice to use drugs. The conditions that promote quitting a drug addiction include new information, cultural values, and, of course, the costs and benefits of further drug use. Most of us avoid becoming drug dependent, not because we are especially rational, but because we loathe the idea of being an addict. HeymanÕs analysis of well-established but frequently ignored research leads to unexpected insights into how we make choicesÑfrom obesity to McMansionizationÑall rooted in our deep-seated tendency to consume too much of whatever we like best. As wealth increases and technology advances, the dilemma posed by addictive drugs spreads to new products. However, this remarkable and radical book points to a solution. If drug addicts typically beat addiction, then non-addicts can learn to control their natural tendency to take too much.


The Economic Analysis of Substance Use and Abuse

The Economic Analysis of Substance Use and Abuse
Author: Frank J. Chaloupka
Publisher: University of Chicago Press
Total Pages: 398
Release: 2009-02-15
Genre: Business & Economics
ISBN: 0226100499

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Conventional wisdom once held that the demand for addictive substances like cigarettes, alcohol, and drugs was unlike that for any other economic good and, therefore, unresponsive to traditional market forces. Recently, however, researchers from two disparate fields, economics and behavioral psychology, have found that increases in the overall price of an addictive substance can significantly reduce both the number of users and the amounts those users consume. Changes in the "full price" of addictive substances—including monetary value, time outlay, effort to obtain, and potential penalties for illegal use—yield marked variations in behavioral outcomes and demand. The Economic Analysis of Substance Use and Abuse brings these distinctive fields of study together and presents for the first time an integrated assessment of their data and results. Unique and innovative, this multidisciplinary volume will serve as an important resource in the current debates concerning alcohol and drug use and abuse and the impacts of legalizing illicit drugs.


The Oxford Handbook of Health Economics

The Oxford Handbook of Health Economics
Author: Sherry Glied
Publisher: OUP Oxford
Total Pages: 992
Release: 2013-05-23
Genre: Business & Economics
ISBN: 0191667161

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The Oxford Handbook of Health Economics provides an accessible and authoritative guide to health economics, intended for scholars and students in the field, as well as those in adjacent disciplines including health policy and clinical medicine. The chapters stress the direct impact of health economics reasoning on policy and practice, offering readers an introduction to the potential reach of the discipline. Contributions come from internationally-recognized leaders in health economics and reflect the worldwide reach of the discipline. Authoritative, but non-technical, the chapters place great emphasis on the connections between theory and policy-making, and develop the contributions of health economics to problems arising in a variety of institutional contexts, from primary care to the operations of health insurers. The volume addresses policy concerns relevant to health systems in both developed and developing countries. It takes a broad perspective, with relevance to systems with single or multi-payer health insurance arrangements, and to those relying predominantly on user charges; contributions are also included that focus both on medical care and on non-medical factors that affect health. Each chapter provides a succinct summary of the current state of economic thinking in a given area, as well as the author's unique perspective on issues that remain open to debate. The volume presents a view of health economics as a vibrant and continually advancing field, highlighting ongoing challenges and pointing to new directions for further progress.


Pathways of Addiction

Pathways of Addiction
Author: Institute of Medicine
Publisher: National Academies Press
Total Pages: 330
Release: 1996-11-01
Genre: Medical
ISBN: 0309055334

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Drug abuse persists as one of the most costly and contentious problems on the nation's agenda. Pathways of Addiction meets the need for a clear and thoughtful national research agenda that will yield the greatest benefit from today's limited resources. The committee makes its recommendations within the public health framework and incorporates diverse fields of inquiry and a range of policy positions. It examines both the demand and supply aspects of drug abuse. Pathways of Addiction offers a fact-filled, highly readable examination of drug abuse issues in the United States, describing findings and outlining research needs in the areas of behavioral and neurobiological foundations of drug abuse. The book covers the epidemiology and etiology of drug abuse and discusses several of its most troubling health and social consequences, including HIV, violence, and harm to children. Pathways of Addiction looks at the efficacy of different prevention interventions and the many advances that have been made in treatment research in the past 20 years. The book also examines drug treatment in the criminal justice setting and the effectiveness of drug treatment under managed care. The committee advocates systematic study of the laws by which the nation attempts to control drug use and identifies the research questions most germane to public policy. Pathways of Addiction provides a strategic outline for wise investment of the nation's research resources in drug abuse. This comprehensive and accessible volume will have widespread relevanceâ€"to policymakers, researchers, research administrators, foundation decisionmakers, healthcare professionals, faculty and students, and concerned individuals.


The Age of Addiction

The Age of Addiction
Author: David T. Courtwright
Publisher: Harvard University Press
Total Pages: 337
Release: 2019-05-06
Genre: History
ISBN: 0674737377

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We live in an age of addiction, from compulsive gaming and shopping to binge eating and opioid abuse. What can we do to resist temptations that insidiously and deliberately rewire our brains? Nothing, David Courtwright says, unless we understand the global enterprises whose “limbic capitalism” creates and caters to our bad habits.