Electronic cigarette substitution in the experimental tobacco marketplace: A review

Abstract

The evolution of science derives, in part, from the development and use of new methods and techniques. Here, we discuss one development that may have impact on the understanding of tobacco regulatory science: namely, the application of behavioral economics to the complex tobacco marketplace. The purpose of this paper is to review studies that examine conditions impacting the degree to which electronic nicotine delivery system (ENDS) products substitute for conventional cigarettes in the Experimental Tobacco Marketplace (ETM). Collectively, the following factors constitute the current experimental understanding of conditions that will affect ENDS use and substitution for conventional cigarettes: increasing the base price of conventional cigarettes, increasing taxation of conventional cigarettes, subsidizing the price of ENDS products, increasing ENDS nicotine strength, and providing narratives that illustrate the potential health benefits of ENDS consumption in lieu of conventional cigarettes. Each of these factors are likely moderated by consumer characteristics, which include prior ENDS use, ENDS use risk perception, and gender. Overall, the ETM provides a unique method to explore and identify the conditions by which various nicotine products may interact with one another that mimics the real world. In addition, the ETM permits the efficacy of a broad range of potential nicotine policies and regulations to be measured prior to governmental implementation.

Keywords: Behavioral economics; Cigarettes; Demand; Electronic cigarettes; Electronic nicotine delivery system; Experimental tobacco marketplace; Substitution.

Fig. 1.

The main purchasing screen of the ETM showing all products available, relevant information, and pricing. The type and brand of conventional cigarette and e- liquid is customizable based on participant preferences.

Fig. 2.

Hypothetical demand curve (top panel) and substitution curves (bottom panel) for cigarettes and three common nicotine products, respectively. Note that alternative products are set at a fixed price and their purchasing is examined as a function of the increasing prices of the target product (in this example, cigarettes).