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Related Experiment Video

Updated: Jul 16, 2026

A Microcontroller Operated Device for the Generation of Liquid Extracts from Conventional Cigarette Smoke and Electronic Cigarette Aerosol
09:30

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Published on: January 18, 2018

Decomposing the value of cigarettes using experimental auctions.

Daniel C Monchuk1, Matthew C Rousu, Jason F Shogren

  • 1Department of Economics, University of Southern Mississippi, Hattiesburg, MS, USA.

Nicotine & Tobacco Research : Official Journal of the Society for Research on Nicotine and Tobacco
|March 17, 2007
PubMed
Summary

Smokers value nicotine, willing to pay more for cigarettes containing it. This study used genetically modified, reduced-nicotine cigarettes to assess nicotine

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Area of Science:

  • Economics
  • Addiction Science
  • Genetics

Background:

  • Nicotine is the primary addictive component in cigarettes.
  • Understanding the economic value smokers place on nicotine is crucial for public health interventions.
  • Previous research often uses established brands, which may not accurately reflect willingness to pay for nicotine itself.

Purpose of the Study:

  • To estimate the economic value smokers assign to nicotine in cigarettes.
  • To differentiate the value of nicotine from other cigarette attributes.
  • To utilize a novel approach with genetically modified, reduced-nicotine cigarettes.

Main Methods:

  • Experimental auctions were conducted at two grocery stores.
  • A new cigarette brand with genetically modified, reduced nicotine content (no taste alteration) was used.
  • Smokers' bids for cigarettes with varying nicotine levels (zero and low) were recorded.

Main Results:

  • Smokers were willing to pay $1.25-$1.45 for a pack of zero-nicotine cigarettes.
  • Smokers were willing to pay $1.59-$1.66 for a pack of low-nicotine cigarettes.
  • This indicates a significant economic value placed on nicotine content.

Conclusions:

  • Smokers derive substantial economic value from the nicotine content of cigarettes.
  • Nicotine reduction strategies, by lowering perceived value, may aid smoking cessation efforts.
  • The study provides empirical evidence for the role of nicotine in smokers' valuation of tobacco products.