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The demand for nicotine replacement therapies is inversely related to the price.



Econometric studies found strong evidence that NRT prices are inversely related to the demand for NRT products. In the US, the average product-specific price elasticities of demand ranged from -0.77 to -3.74, implying that a 10% decrease in the price of NRT will increase the use of NRT products by between 7.7% and 37.4%. A negative relation between NRT prices and demand for NRT products was also found in Japan.
The NRT products appear to be economic substitutes since there is a positive relationship between the demand for any given NRT product and the average price of all other NRT products. 
The health insurance coverage of cessation treatments increases use of NRT, quit attempts, and successful quit rates.



Tauras JA, Chaloupka FJ. The demand for nicotine replacement therapies. Nicotine Tob Res. 2003; 5(2): 237-243.

Tauras JA, Chaloupka FJ, Emery S. The impact of advertising on nicotine replacement therapy demand. Soc Sci Med. 2005; 60(10): 2351-2358.

Ogura S, Suzuki W, Kawamura M, Kadoda T. Conjoint Analysis to Estimate the Demand for Nicotine Replacement Therapy in Japan, in Wise D A, Yashiro N. Health Care Issues in the United States and Japan (National Bureau of Economic Research Conference Report), University of Chicago Press, 2006.

Schauffler HH, McMenamin S, Olson K, Boyce-Smith G, Rideout JA, Kamil J. Variations in treatment benefits influence smoking cessation: results of a randomised controlled trial. Tob Control. 2001; 10: 175-180.

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