American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Do Consumers Exploit Commitment Opportunities? Evidence from Natural Experiments Involving Liquor Consumption
American Economic Journal: Economic Policy
vol. 8,
no. 4, November 2016
(pp. 41–69)
Abstract
This paper provides evidence concerning the extent to which consumers of liquor employ commitment devices. One widely recommended commitment strategy is to regulate alcohol consumption by deliberately manipulating availability. The paper assesses the prevalence of the "availability strategy" by evaluating the effects of policies that would influence its effectiveness--specifically, changes in allowable Sunday sales hours. It finds that consumers increase their liquor consumption in response to extended Sunday on-premises sales hours, but not in response to extended off-premises sales hours. The latter finding is inconsistent with widespread use of the availability strategy.Citation
Bernheim, B. Douglas, Jonathan Meer, and Neva K. Novarro. 2016. "Do Consumers Exploit Commitment Opportunities? Evidence from Natural Experiments Involving Liquor Consumption." American Economic Journal: Economic Policy, 8 (4): 41–69. DOI: 10.1257/pol.20130351Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- K39 Other Substantive Areas of Law: Other
- L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
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