In economic models of behavior, information plays an important role. Sometimes the role lurks in the background – when usually the model assumes that individuals have some level of knowledge (full or partial). In this paper I empirically investigate whether and how smoking behavior changes when people are exposed to information about the risks of smoking. I use individual survey data that tracks smoking behavior of individuals over their whole life-course – from birth until the date of the interview. The data include individuals who started smoking as early as 1930 – well before scientific evidence had accumulated. To these data I merge newly developed measures of information about the dangers of smoking. These measures consist of potential exposure to magazine articles about smoking that vary across individuals, geographic space, and time. I use those data to create variables that measure each individual’s stock and flow of information. I explore whether and how individuals changed their smoking behavior as they accumulated information and as new information was revealed. More generally the paper highlights conceptual issues for any economic decision that changes with information.
Presented by:
Dean Lillard (Ohio State University)
Date & time:
June 8, 2015 2:00 pm - June 8, 2015 3:30 pm
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