A behavioral economic analysis of concurrently available money and cigarettes.

In economic terms, consumption of a reinforcer is determined by its price and the availability and price of other reinforcers. This study examined the effects of response-requirement (i.e., price) manipulations on the self-administration of two concurrently available reinforcers. Six cigarette smokers participated in 4-hr sessions in which money and puffs on a cigarette were concurrently available according to fixed-ratio schedules of reinforcement. Once stable responding was obtained with both reinforcers available at Fixed Ratio 100, the response requirement for one reinforcer was systematically varied (Fixed Ratio 1,000 and 2,500), while the other reinforcer remained scheduled at Fixed Ratio 100. Increasing the fixed-ratio size for a reinforcer decreased its consumption, with a greater decrease occurring for monetary reinforcement. This finding was quantified in economic terms as own-price elasticity, with elasticity coefficients greater for money than cigarettes. The effects of fixed-ratio size on response output also differed across the two reinforcers. Although greater responding occurred for money at Fixed Ratio 100, increases in fixed-ratio size (for money) decreased responding for money, whereas the same increase in fixed-ratio size (for puffs) increased responding for puffs. Finally, increasing the fixed-ratio size for one reinforcer had little effect on consumption of the other concurrently available reinforcer. This finding was quantified as cross-price elasticity, with elasticity coefficients near 0.0 for most subjects, indicating little or no reinforcer interaction. The results indicate that the reinforcing effects of cigarettes and money in the setting studied here differed, and that the effects produced by changing the price of one reinforcer did not interact with the consumption of the other concurrently available reinforcer.     

Consumer brand choice: individual and group analyses of demand elasticity

Following the behavior-analytic tradition of analyzing individual behavior, the present research investigated demand elasticity of individual consumers purchasing supermarket products, and compared individual and group analyses of elasticity. Panel data from 80 UK consumers purchasing 9 product categories (i.e., baked beans, biscuits, breakfast cereals, butter, cheese, fruit juice, instant coffee, margarine and tea) during a 16-week period were used. Elasticity coefficients were calculated for individual consumers with data from all or only 1 product category (intra-consumer elasticities), and for each product category using all data points from all consumers (overall product elasticity) or 1 average data point per consumer (interconsumer elasticity). In addition to this, split-sample elasticity coefficients were obtained for each individual with data from all product categories purchased during weeks 1 to 8 and 9 to 16. The results suggest that: 1) demand elasticity coefficients calculated for individual consumers purchasing supermarket food products are compatible with predictions from economic theory and behavioral economics; 2) overall product elasticities, typically employed in marketing and econometric research, include effects of interconsumer and intraconsumer elasticities; 3) when comparing demand elasticities of different product categories, group and individual analyses yield similar trends; and 4) individual differences in demand elasticity are relatively consistent across time, but do not seem to be consistent across products. These results demonstrate the theoretical, methodological, and managerial relevance of investigating the behavior of individual consumers.     

Simulating demand for cigarettes among pregnant women: A Low‐Risk method for studying vulnerable populations

A substantive obstacle to experimentally studying cigarette smoking and use of other tobacco products in pregnant women is the risk of adverse effects on mother and fetus from experimenter administration of the product of interest. The purpose of this study is to investigate bypassing that obstacle by using behavioral economic simulation tasks. In the present study we used the Cigarette Purchase Task (CPT) to simulate changes in demand for hypothetical cigarettes as a function of varying cigarette prices. Participants were 95 pregnant women who completed the CPT prior to participation in a smoking‐cessation trial. Aggregate and individual participant demand varied as an orderly function of price and those changes were well fitted by an exponential equation. Demand also varied in correspondence to two well‐validated predictors of individual differences in smoking cessation among pregnant women (cigarettes smoked per day, pre‐pregnancy quit attempts). Moreover, CPT indices were more effective than these two conventional variables in predicting individual differences in whether women made a quit attempt during the current pregnancy. Overall, these results represent a promising step in demonstrating the validity and utility of the CPT for experimentally examining demand for cigarettes, and potentially other tobacco and nicotine delivery products, among pregnant women.     

A two‐part mixed effects model for cigarette purchase task data

The Cigarette Purchase Task is a behavioral economic assessment tool designed to measure the relative reinforcing efficacy of cigarette smoking across different prices. An exponential demand equation has become a standard model for analyzing purchase task data, but its utility is compromised by its inability to accommodate values of zero consumption. We propose a two‐part mixed effects model that keeps the same exponential demand equation for modeling nonzero consumption values, while providing a logistic regression for the binary outcome of zero versus nonzero consumption. Therefore, the proposed model can accommodate zero consumption values and retain the features of the exponential demand equation at the same time. As a byproduct, the logistic regression component of the proposed model provides a new demand index, the “derived breakpoint”, for the price above which a subject is more likely to be abstinent than to be smoking. We apply the proposed model to data collected at baseline from college students (N = 1,217) enrolled in a randomized clinical trial utilizing financial incentives to motivate tobacco cessation. Monte Carlo simulations showed that the proposed model provides better fits than an existing model. We note that the proposed methodology is applicable to other purchase task data, for example, drugs of abuse.     

Building trust to increase purchase intentions: The signaling impact of low pricing policies

We examine the differential signaling impact of two low pricing policies, Price Matching Guarantees and Everyday Low Prices, on consumers' trusting beliefs and purchase intentions. We demonstrate that both PMG and EDLP pricing policies signal stores' ability to offer lower prices. However, whether these sellers were perceived as benevolent, and—consequently—consumers' purchase intentions, varied critically depending upon price uncertainty. Perceived benevolence and purchase intentions were significantly higher [lower] for sellers offering PMG than EDLP when price dispersion was high [low]. Our findings offer insights into whether and under what conditions firms should adopt these low pricing policies.     

Emotional distress and tobacco demand during the menstrual cycle in female smokers

Fluctuations in ovarian hormones over the menstrual cycle contribute to cigarette reward, however less is known about menstrual cycle influences on emotional distress in female smokers. We examined between-group differences in emotional distress (negative affectivity, emotion dysregulation, distress intolerance) and hypothetical cigarette purchasing (i.e. tobacco demand) among female smokers at three different menstrual stages. Women (n = 32) were non-treatment seeking daily smokers not on hormonal contraceptive, and were currently in their follicular (estradiol-dominant; n = 10), early-mid luteal (progesterone-dominant; n = 15), and late-luteal phase (decreasing progesterone/estradiol; n = 7). Effect sizes are reported given the small sample. Women in the late-luteal phase, relative to the follicular and early-mid luteal phases, reported higher levels of negative affectivity (d = 0.69), emotion dysregulation (d = 1.03), and distress intolerance (d = ?0.86). Compared to the early-mid luteal and late-luteal phases, women in the follicular phase reported the highest hypothetical cigarette consumption when cigarettes were free (d = 0.71) and made the largest maximum expenditures on cigarettes (d = 0.74). Findings offer preliminary evidence that the late-luteal phase is characterized by emotional distress, and the follicular phase is associated with elevated tobacco demand, which if replicated could implicate ovarian hormones in emotion-focused smoking.     

Young adult e-cigarette users’ reasons for liking and not liking e-cigarettes: A qualitative study

Objective: To gain an in-depth understanding of what young adult electronic- or e-cigarette users like or dislike about e-cigarettes. We aimed to determine the reasons that may encourage young adults to use e-cigarettes or discourage them from using e-cigarettes.

Design: Twelve focus group discussions were conducted with 62 current daily e-cigarette users (63% men) of mean age = 25.1 years (standard deviation = 5.5). Data were analysed following principles of inductive content analysis.

Results: Results indicated 12 categories of reasons for liking e-cigarettes (e.g. recreation, smoking cessation) and 6 categories of reasons for not liking e-cigarettes (e.g. poor product quality, poor smoking experience).

Conclusions: Young adults’ motives for using or not using e-cigarettes appear to be varied and their relative importance in terms of predicting e-cigarette use initiation, dependence, and cigarette/e-cigarette dual use needs to be carefully studied in population-based, empirical studies. The current findings suggest that e-cigarettes may serve social, recreational, and sensory expectancies that are unique relative to cigarettes and not dependent on nicotine. Further, successful use of e-cigarettes in smoking cessation will likely need higher standards of product quality control, better nicotine delivery efficiency and a counselling component that would teach smokers how to manage e-cigarette devices while trying to quit smoking cigarettes.     

To Partition or Not to Partition: Role of Trade-in Price on Consumer Evaluations of Purchases Involving Trade-Ins

Many new purchases involve consumers trading in their old product at the same time, requiring them to assume the dual role of a buyer and a seller in the overall exchange. This research examines how framing the overall exchange as a partitioned transaction with separate prices for the new purchase and the trade-in, or a consolidated transaction with a single net price after accounting for the trade-in price, affects consumer preferences. We find that consumers prefer a partitioned (consolidated) transaction when the relative trade-in price is high (low). Unlike previous explanations based on heuristic processing and differential importance of the trade-in price, our reasoning is that partitioning (vs. consolidating) prices makes salient and enables evaluability of the trade-in price. In the absence of specific referents, consumers rely on the new purchase price to evaluate the merits of the trade-in price. Consistent with our reasoning, we identify boundary conditions for the findings. The presence of a favorable referent for the trade-in and whether the new purchase and the trade-in are (perceived to be) in the same product category attenuate the reliance on the new purchase price as a referent. Our findings have important theoretical and managerial implications.     

Purchase task sensitivity to drug and nondrug reinforcers in opioid-agonist treatment patients

The behavioral economics of substance abuse has been increasingly recognized as a method of determining the value of abused substances for individuals who use those substances. It has been hypothesized that such analyses could serve as a clinical tool and that demand functions can be targeted predictors for the level of intervention necessary. This study evaluated the sensitivity of a demand task in 2 patient groups in a medication assisted treatment program (methadone maintenance), those who had used opioids in the last 2 months and those who had not used opioids in at least 18 months. Demand for 7 drugs and a control was assessed using hypothetical purchase tasks. Participants maintaining long-term abstinence had significantly higher α (sensitivity to price) and lower Q₀ (intensity of demand) for heroin than participants who had recently used opioids. Further research is necessary to illustrate if treatment is responsible for this reduction in demand. If so, demand analyses may provide clinical utility as an aid for treatment planning or as a target for treatment.     

Analytical Problems and Suggestions in the Analysis of Behavioral Economic Demand Curves

Behavioral economic demand curves (Hursh, Raslear, Shurtleff, Bauman, & Simmons, 1988) are innovative approaches to characterize the relationships between consumption of a substance and its price. In this article, we investigate common analytical issues in the use of behavioral economic demand curves, which can cause inconsistent interpretations of demand curves, and then we provide methodological suggestions to address those analytical issues.

We first demonstrate that log transformation with different added values for handling zeros changes model parameter estimates dramatically. Second, demand curves are often analyzed using an overparameterized model that results in an inefficient use of the available data and a lack of assessment of the variability among individuals.

To address these issues, we apply a nonlinear mixed effects model based on multivariate error structures that has not been used previously to analyze behavioral economic demand curves in the literature. We also propose analytical formulas for the relevant standard errors of derived values such as P _max, O _max, and elasticity. The proposed model stabilizes the derived values regardless of using different added increments and provides substantially smaller standard errors. We illustrate the data analysis procedure using data from a relative reinforcement efficacy study of simulated marijuana purchasing.     

Three predictions of the economic concept of unit price in a choice context

Economic theory makes three predictions about consumption and response output in a choice situation: (a) When plotted on logarithmic coordinates, total consumption (i.e., summed across concurrent sources of reinforcement) should be a positively decelerating function, and total response output should be a bitonic function of unit price increases; (b) total consumption and response output should be determined by the value of the unit price ratio, independent of its cost and benefit components; and (c) when a reinforcer is available at the same unit price across all sources of reinforcement, consumption should be equal between these sources. These predictions were assessed in human cigarette smokers who earned cigarette puffs in a two-choice situation at a range of unit prices. In some sessions, smokers chose between different amounts of puffs, both available at identical unit prices. Individual subjects' data supported the first two predictions but failed to support the third. Instead, at low unit prices, the relatively larger reinforcer (and larger response requirement) was preferred, whereas at high unit prices, the smaller reinforcer (and smaller response requirement) was preferred. An expansion of unit price is proposed in which handling costs and the discounted value of reinforcers available according to ratio schedules are incorporated.     

Green consumerism: The influence of product attributes and values on purchasing intentions

Generally, a majority of consumers support the idea of purchasing green products. However, this is often not translated into actual behaviour. We argue that there is a trade‐off between the influence of product attributes on purchasing decisions, whereby it is assumed that consumers tend to focus on egoistic product attributes first, followed by green product attributes. In two experimental studies (N = 100 and N = 107), we find support for this reasoning: If product attributes fulfil self‐serving motives (low price, familiar or well‐known brand), green product attributes (cruelty free and low environmental impact) influence purchasing intentions more than when self‐serving motives are not fulfilled (high price, unfamiliar or unknown brand). Further, we investigated if and how values weaken or strengthen the influence of product attributes on purchasing intentions. We conclude that biospheric values steer how product attributes influence purchasing intentions stronger than egoistic values. In line with our expectations, we find that if biospheric values are weak, egoistic product attributes are more influential, whereas if biopheric values are strong, green product attributes are more influential. Copyright © 2014 John Wiley & Sons, Ltd.     

Outwitting the rational mind: How effortful thinking influences price cognition

Prior research presents mixed findings on how people's degrees of effortful thinking influence their reliance on heuristics and biases. Although the tenets of dual process theory would argue that effortful thinking should attenuate people's reliance on heuristics, a number of contemporary findings suggest otherwise: Effortful thinking may, in fact, enhance biased processing of information in certain instances. This research shows how, in the context of pricing, people's degrees of effortful thinking can amplify their inclination towards biased processing of price information. In five studies (n = 1,339), we find that effortful thinking induces a greater preference for nine‐ending (vs. zero‐ending) prices, and the effect is mainly driven by people's greater propensity for argument‐based decision making. Such predilection to nine‐endings attenuates with lower cognitive effort in processing price information. Moreover, when locus of deliberation shifts from price to quality, consumers' preference for nine‐ending priced options is subdued.     

Modelling heterogeneity in behavioral response to peak-avoidance policy utilizing naturalistic data of Beijing subway travelers

Studies of travelers’ response behavior to transportation demand management is receiving substantial attention among researchers and transport operators in recent years. While previous studies in this area have generally assumed that the sensitivity of travelers to different factors is homogeneous and relies on survey responses, which may be prone to self-reporting errors and/or subject to behavioral incongruence. Relying on naturalistic data, this paper aims to investigate the behavioral response to pre-peak discount pricing strategy in the context of the Beijing subway with a special focus on the heterogeneity among the travelers. Anonymous smart card data from 5946 travelers before and after the introduction of a peak avoidance policy in Beijing are used to construct a latent class choice model to capture the sensitivity to different factors and the associated taste heterogeneity of travelers. Given the passive nature of the data, the model can offer more realistic outputs. The results indicate that there is substantial heterogeneity in travelers’ responses to the peak avoidance policy, and that they can be probabilistically allocated to four latent classes. For all classes of travelers, the decision to shift their departure to off-peak is affected by the monetary saving, the required change in departure time and the frequency of travel, but in different magnitudes. In particular, only two classes of travelers (who exhibit lower standard-deviation in pre-intervention departure time) show significant sensitivity to price changes indicating that the discount policies are more likely to be effective for these groups. The rest of travelers are largely price insensitive – warranting the need for non-monetary incentives as opposed to fare discounts. To the best of our knowledge, this study is the first to innovatively apply the LCC framework to analyze travelers’ heterogeneous behavior using large-scale smart card data without socio-demographic information. The findings can provide guidance to the subway authority in devising differential peak avoidance policies targeted for different groups of users, which are likely to be more effective than the current ‘one size fits all’ approach.     

DEMAND EQUATIONS FOR QUALITATIVELY DIFFERENT FOODS UNDER FIXED‐RATIO SCHEDULES: A COMPARISON OF THREE DATA CONVERSIONS

Concurrent schedules were used to establish 6 hens' preferences for three foods. The resulting biases suggested wheat was preferred over honey‐puffed and puffed wheat, and puffed wheat was the least preferred food. The hens then responded under fixed‐ratio schedules for each food in 40‐min (excluding reinforcer time) sessions, with the response requirement doubling each session until no reinforcers were received. At the smaller ratios, the less preferred the food, the faster the hens' overall response rates (mainly as a result of shorter postreinforcement pauses) and the more reinforcers they received. The relations between the logarithms of the number of reinforcers obtained (consumption) and the response ratio (price) were well fitted by curvilinear demand functions. Wheat produced the smallest initial consumption (ln L), followed by honey‐puffed and puffed wheat, respectively. The response requirement at which the demand functions predicted maximal responding (P_max) were larger for wheat than for the other foods. Normalizing consumption and price, as suggested by Hursh and Winger (1995), moved the data for the three foods towards a single demand function; however, the P_max values were generally largest for puffed wheat. The results of normalization, as suggested by Hursh and Silberberg (2008), depended on the k value used. The parameter k is related to the range of the data, and the same k value needs to be used for all data sets that are compared. A k value of 8.0 gave significantly higher essential values (smaller α values) for puffed wheat as compared to honey‐puffed wheat and wheat, and the P_max values, in normalized standard price units, were largest for puffed wheat. Normalizing demand by converting the puffed and honey‐puffed wheat reinforcers to wheat equivalents (by applying the bias parameter from the concurrent‐schedules procedure) maintained separate demand functions for the foods. Those for wheat had the smallest rates of change in elasticity (a) and, in contrast to the other analyses, the largest P_max values. Normalizing demand in terms of concurrent‐schedule preference appears to have some advantages and to merit further investigation.     

Understanding consumer purchase of free‐of cosmetics: A value‐driven TRA approach

This study concerns the free‐of trend on the cosmetics market as expressed by a tendency among consumers to prefer cosmetics that are free of certain ingredients. Combining the Theory of Reasoned Action with a value‐driven approach, this study empirically investigates the association between consumers' personal values and their attitude and behaviour associated with purchasing free‐of cosmetics. A quantitative online survey of 250 Danish female consumers was conducted using self‐administering questionnaires. The findings indicate that consumers' willingness to purchase free‐of cosmetics (R² = .48) is both influenced by attitude (β = .65) and perceived subjective norm (β = .21) with attitude having the largest predictive power. Moreover, consumers' attitude towards willingness to purchase free‐of cosmetics seems to be value driven. Our results indicate that two values, self‐transcendence (β = .28) and self‐enhancement (β = ?.21), significantly influence attitude towards free‐of cosmetics purchase (R² = .10). Copyright © 2012 John Wiley & Sons, Ltd.     

Cross-Sex Best Friendship Influences on Early Adolescent Cigarette and Alcohol Expectancies and Use

In this study, the author investigates the influences of cross-sex best friends in early adolescence in regard to cigarettes and alcohol. Specific goals include determining the prevalence of cross-sex best friendships, investigating expectancies and perceived approval of the use of cigarettes and alcohol, and examining substance use levels. A group of urban sixth, seventh, and eighth graders completed a survey that addressed these issues. Results indicate the presence of cross-sex best friendships in the sample. Significant findings on cross-sex best friends' influence include positive expectancies for alcohol in sixth (p = .006) grade, the perception of seventh graders that the best friend's attitudes about smoking (p = .003) and drinking (p = .001) are less negative, and higher levels of cigarette use in sixth (p = .001) and eighth (p = .024) grade and alcohol use in sixth (p = .008), seventh (p = .002), and eighth grades (p = .039).     

Associations of Health-Related Quality of Life with Healthcare Utilization Status in Veterans

Evidence indicates that veterans using VA healthcare services have poor health-related quality of life (HRQOL). Little is known, however, about differences in HRQOL among those who only use VA services and those who also use non-VA services. We sought to evaluate differences in HRQOL among veterans who use: (1) only non-VA services (2) only VA services and (3) both VA and non-VA services (i.e., dual users). A cross-sectional study of 39,942 US veterans who completed the CDC’s 2004 Behavioral Risk Factor Surveillance System (BRFSS) survey was analyzed. Self-rated measures of global health status and the number of days per month that veterans were limited by physical or mental problems were extracted from BRFSS survey data as outcomes. Multivariate logistic regression demonstrated that, compared to those receiving all healthcare outside of VA, veterans receiving VA care were more likely to report poorer health outcomes, including worse global health status, greater impairments in physical functioning, and increased limitations regarding routine activities (p’s ≤ .05). Both exclusive and dual users of VA services reported poorer HRQOL than individuals not using VA services. More research is needed regarding veterans’ health status, particularly in the context of dual use.     

Peer-group association and adolescent tobacco use

Mosbach & Leventhal (1988) examined the relation of cigarette smoking to peer-group identification in rural Wisconsin adolescents. They found that among dirts (problem-prone youth), regulars (average youth), hot-shots (good social or academic performers), and jocks (athletes), youth most likely to smoke were dirts and hot-shots. We performed a replication with a Southern California cohort and also for use of smokeless tobacco. We hypothesized that jocks would be the main users of smokeless tobacco. We identified the same groups and an additional one, skaters (skateboarders or surfers). As Mosbach & Leventhal found, cigarettes were used most by dirts. Contrary to their results, but consistent with other research, we found that hot-shots were least likely to smoke. Contrary to our prediction, we found that skaters and dirts were more likely to use smokeless tobacco than were jocks. Our data show that both tobacco forms are used by problem-prone youth.     

Smoking motivation: A factor-analytical study

Factor analyses were carried out on the responses of 115 cigarette smokers to the Smoking Questionnaire of Russell et al. (1974), to the Situational Smoking Questionnaire of Frith (1971) and to certain items of a biographical smoking questionnaire. In the analysis of Russell's questionnaire, a set of six factors was extracted, bearing some resemblance to the six factors found by the authors of the questionnaire, although the matching of factors was by no means perfect. However, the results did support Russell et al.'s finding of a major dimension of degree of dependence upon cigarettes, together with an orthogonal factor contrasting pharmacological with non-pharmacological dependence. The analysis of the Situational Smoking Questionnaire confirmed Frith's finding that the first principal component represented a general desire for cigarettes while the second contrasted desire to smoke in high- and low-arousal inducing (or stressful and relaxing) situations; and these two components corresponded fairly well with the first two components extracted from Russell's questionnaire, pharmacological dependence being associated with smoking in stressful situations.