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Abstract
This paper analyzes the welfare effects of a public smoking ban in bars. We construct a model that captures crucial features of bar life: competing bars, social interaction, and heterogenous preferences for a smoking ban. Smokers and non-smokers simultaneously choose a bar given their preferences for meeting other people. Bars anticipate the behavior of individuals and choose the smoking regime strategically. Since the (dis)utility from smoking and social interaction are substitutes, the smoking regime is a stronger coordination device if the disutility from smoking is large. If all bars allow smoking in equilibrium, a public smoking ban enhances welfare.
| Dokumententyp: | Paper |
|---|---|
| Keywords: | Smoking Ban, Social Interaction, Coordination Game |
| Fakultät: | Volkswirtschaft
Volkswirtschaft > Munich Discussion Papers in Economics |
| Themengebiete: | 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie
300 Sozialwissenschaften > 330 Wirtschaft |
| JEL Classification: | L13, I18, D61 |
| URN: | urn:nbn:de:bvb:19-epub-10593-1 |
| Sprache: | Englisch |
| Dokumenten ID: | 10593 |
| Datum der Veröffentlichung auf Open Access LMU: | 05. Mai 2009, 13:17 |
| Letzte Änderungen: | 08. Nov. 2020, 11:13 |
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