Investigating the Effects of Excise Taxes, Public Usage Restrictions, and Antismoking Ads Across Cigarette Brands

Abstract

The prevalence of strong brands such as Coca-Cola, McDonald’s, Budweiser, and Marlboro in “vice” categories has important implications for regulators and consumers. While researchers in multiple disciplines have studied the effectiveness of anti-tobacco counter-marketing strategies, little attention has been given to how brand strength may moderate the efficacy of tactics such as excise taxes, usage restrictions, and educational advertising campaigns. In this research, we use a multiple discrete-continuous model to study the impact of anti-smoking techniques on smokers’ choices of brands and quantities. Our results suggest that while cigarette excise taxes decrease smoking rates, these taxes also result in a shift in market share towards stronger brands. Market leaders may be less affected by tax policies because their market power allows strong brands such as Marlboro to absorb rather than pass through increased taxes. In contrast, smoke-free restrictions cause a shift away from stronger brands. In terms of anti-smoking advertising we find minimal effects on brand choice and consumption. The findings highlight the importance of considering brand asymmetries when designing a policy portfolio cigarette tax hikes, smoke-free restrictions, and anti-smoking advertising campaigns.

Гармонізація Українського Законодавства Про Акцизне Оподаткування Тютюнових Виробів Із Правом Єс З Урахуванням Практики Суду Єс

“…Євроінтеграційні прагнення України, які реалізуються через гармонізацію вітчизняного законодавства і законодавства ЄС, є одним з основних пріоритетних напрямів сучасної державної політики. Україна як держава, що уклала Угоду про асоціацію між ЄС та Україною (далі -Угода) [ [6], S. Ranđelović, M. Bisić [7], S. Marzioni, A. Pandimiglio, M. Spallone [8], E. Kolářová, D. Homola [9], J. Hoek, R. Edwards, G.W. Thomson [10], C. Schafferer, C.-Y.…”

Learning from Data: An Empirics-First Approach to Relevant Knowledge Generation

“…For example, resistance to food technologies such as genetic modification that can alleviate health problems, hunger, and environmental harm is ultimately a question of consumer behavior (Kim, Kim, and Arora 2022). Insights that reduce such resistance speak to managerial and public policy, as would insights regarding the efficacy of interventions to discourage smoking (Wang, Lewis, and Singh 2021) or improve financial literacy (Fernandes, Lynch, and Netemeyer 2014).…”

Societal Spillovers of TV Advertising: Social Distancing During a Public Health Crisis

“…Fewer studies in comparison have investigated the impact of advertising on social-behavioral outcomes, with mixed results. For example, some researchers find significant effects of TV advertising on smoking cessation (Emery et al 2012) and drunk driving (Niederdeppe, Avery, and Miller 2017), while others find modest to nonsignificant effects (Levy, Compton, and Dienstfrey 2004; Wakefield, Loken, and Hornik 2010; Wang, Lewis, and Singh 2021). A growing stream of research has focused on studying the “spillovers” of advertising on brand-related outcomes (e.g., Danaher, Bonfrer, and Dhar 2008; Fossen, Mallapragada, and De 2021; Shapiro 2018).…”