Do Addicts Behave Rationally?

B-Tier
Journal: Scandanavian Journal of Economics
Year: 1998
Volume: 100
Issue: 3
Pages: 643-661

Authors (2)

Ernst Fehr (Universität Zürich) Peter K. Zych (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The theory of rational addiction assumes that addicts' behavior is fully rational. Common sense and psychological introspection suggest, however, that addictive behavior is irrational. Without knowledge of the addicts' preferences this dispute cannot be resolved. This paper reports the results of an experiment in which addictive preferences were induced. It turns out that ‘addicts’ consume systematically too much compared to the optimal consumption decision. We explain this systematic excess consumption in terms of the psychologically salient features of addictive goods.

Technical Details

RePEc Handle
repec:bla:scandj:v:100:y:1998:i:3:p:643-661
Journal Field
General
Author Count
2
Added to Database
2026-01-25