American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Addiction and Cue-Triggered Decision Processes
American Economic Review
vol. 94,
no. 5, December 2004
(pp. 1558–1590)
Abstract
We propose a model of addiction based on three premises: (i) use among addicts is frequently a mistake; (ii) experience sensitizes an individual to environmental cues that trigger mistaken usage; (iii) addicts understand and manage their susceptibilities. We argue that these premises find support in evidence from psychology, neuroscience, and clinical practice. The model is tractable and generates a plausible mapping between behavior and the characteristics of the user, substance, and environment. It accounts for a number of important patterns associated with addiction, gives rise to a clear welfare standard, and has novel implications for policy.Citation
Bernheim, B. Douglas, and Antonio Rangel. 2004. "Addiction and Cue-Triggered Decision Processes." American Economic Review, 94 (5): 1558–1590. DOI: 10.1257/0002828043052222Additional Materials
JEL Classification
- D11 Consumer Economics: Theory
- I12 Health Production
- I18 Health: Government Policy; Regulation; Public Health
- K42 Illegal Behavior and the Enforcement of Law