1. Rousu,M., S. Marette, J. Thrasher, and J. Lusk. (2014). “The Economic Value to Smokers of Graphic Warning Labels onCigarettes: Evidence from Combining Market and Experimental AuctionsData”. Journal of Economic Behavior and Organization, 108: 123-134.
Many countries now require prominent pictorial health warning labels (HWLs) on the front and back of cigarette packages. In the US, pictorial HWLs have been adopted, but tobacco industry litigation has delayed their implementation. This intervention could have value to smokers, if it increases their information and changes their smoking behavior. In this paper we estimate the value of two different health warning labels for cigarette packages relative to the current US labeling policy. Our methodology does not depend on the personal values of policy makers or other individuals, as the value of information estimates we derive are based solely on smokers’ own consumption choices, not any public health or other effects. We introduce an approach to valuing information with a surplus measure that couples willingness-to-pay from non-hypothetical experimental auctions with time-series revealed preference demand estimates. We find that a pictorial HWL has a large value to smokers, and a higher value than a label that only contains text, insofar as changing purchase behavior.
2. Corrigan, J., M. Rousu, and D. Depositario. (2014). “Do Practice Rounds AffectExperimental Auction Results.” Economics Letters, 123: 42-44.
Researchers use practice rounds to familiarize participants with experimental auction mechanisms. We find a positive correlation between practice bids and bids submitted in later rounds. We consider three explanations for this correlation: a behavioral anchoring effect, a tendency for some auction participants to be more free-spending, and misconception of the experimental auction’s demand revealing qualities
3. “Examining the relationship betweenpsychosocial and behavioral proxies for future consumption behavior: self-reportedimpact and bidding behavior in an experimental auction study on cigarettelabeling.” Health Education Behavior, 29 (2): 183-194.
4. “The impact of product information and trialson demand for smokeless tobacco and cigarettes: Evidence from experimentalauctions.” Preventive Medicine, 60: 3-9.
5. “Simulated Demandand Cross-Price Elasticity for Snus, Dissolvable Tobacco, and Nicotine Lozengeas Alternatives to Cigarettes.” American Journal of Health Behavior. 38(1):103-13