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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 -1.85 to -3.85, implying that a 10% decrease in the price of NRT will increase the use of NRT products by between 18.5% and 38.5%. Consistent with economic theory, the brand-specific price elasticities of demand were smaller in absolute value than the product-specific price elasticities of demand. The estimated brand specific price elasticity of demand ranged from -1.11 to -2.38. Negative relation between NRT prices and demand for NRT products was also found in Japan.

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. logo
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