American Economic Review Vol. 94 No. 5 2004
Addiction and Cue-Triggered Decision Processes
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.
- DOI
- 10.1257/0002828043052222
- Volume
- 94
- Issue
- 5
- Pages
- 1558-1590
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref