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Smokers, Smoking Deprivation, and Time Discounting

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Abstract

This chapter investigates whether smokers exhibit greater time discounting than non-smokers, and how short-term nicotine deprivation affects time discounting. A unique feature of our experiment is that our subjects receive rewards not only of money, but also of actual tobacco. This is done in order to elicit smokers’ true preferences. Smokers are more impatient than non-smokers, consistent with previous studies. Additionally, nicotine deprivation makes smokers even more impatient. These results suggest that nicotine concentration has different effects on time preferences in the short and long runs.

The original article first appeared in the Journal of Socio-Economics 45:47–56, 2013. A newly written addendum has been added to this book chapter.

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Notes

  1. 1.

    However, Khwaja et~al. (2007), based on survey results, report that there are no significant differences in revealed rates of time discounting between smokers and non-smokers.

  2. 2.

    Note that there exists reverse causality, in that the time discount rate significantly affects an individual’s decision to start smoking (Sato and Ohkusa 2003).

  3. 3.

    Several studies investigate what kinds of people more easily abstain from smoking. For example, Krishnan-Sarin et~al. (2007) study 30 adolescent smokers, who participated in a high school based smoking cessation program; 16 participants (53 %) were abstinent from smoking at the completion of the 4-week study. Compared to abstinent adolescents, those not achieving abstinence discounted monetary rewards more. Thus, it may be the case that more impulsive adolescents were unable to achieve abstinence. Dallery and Raiff (2007) report that those who had higher time discounting tended to choose smoking more often than money, suggesting that they had more difficulty abstaining. Conducting a 5-month follow-up survey of 608 Japanese adults who had just begun smoking cessation, Ida et~al. (2011) found that cessation successes are more risk averse than cessation failures, and that time preference rates decrease for cessation successes and increase for cessation failures.

  4. 4.

    £500 corresponds to 100 packs, where one pack contains 20 cigarettes. The rewards are hypothetical in Field et~al. (2006), and are not actually paid to the subjects.

  5. 5.

    Yoon et~al. (2009) conduct a choice task involving real money and cigarettes; however, subjects are requested to choose between one puff now and $0.25 now, so that their task is not an intertemporal choice.

  6. 6.

    The experiment was carried out using the software Hot Soup Play.

  7. 7.

    However, the time delays displayed in each block are the same, implying that we ignored the gap between the displayed time and the real time. This gap was less than 3 min.

  8. 8.

    Note that we did not ask all the possible combinations.

  9. 9.

    At this time the exchange rate was about $1 = ¥90.

  10. 10.

    Most of the rewards in the money session, except for the ones received immediately, were paid later at the specified times by bank transfer.

  11. 11.

    In the hypothetical tobacco session, we asked the subjects to “suppose you were unable to smoke for 24 h after the experiment” when they made their choices.

  12. 12.

    Mitchell (2004) uses only 11 smokers. Field et~al. (2006) use 30 smokers.

  13. 13.

    The experiments began at either 10 am or 1 pm.

  14. 14.

    Mitchell (2004) asked her subjects to stop smoking for 24 h; Field et~al. (2006) 13 h; and Dallery and Raiff (2007) 3 h.

  15. 15.

    The interval is fixed in each session, so that its effect is included in the constant term.

  16. 16.

    Although smokers are also compared with non-smokers in the money session, only the results for deprived vs. non-deprived smokers are used in the analysis of deprivation.

  17. 17.

    This may be the reason why no delay effect is found when the delay variable itself is used as a regressor instead of these dummies.

  18. 18.

    The real tobacco session dealt with an immediate delay, while the hypothetical tobacco and money sessions assumed longer delays. Therefore, it might be the case that the difference in the magnitude of the delays in the different sessions is responsible for this result.

  19. 19.

    For the money session, we also estimate an equation including all return dummies (the results are omitted to save space). All the coefficients on the dummies are significantly positive and increasing in the amount. Thus, rationality of subjects’ choices with respect to returns is again confirmed. The delay and magnitude effects are unchanged from those in the upper panel.

  20. 20.

    The number of observations is smaller than 50 because those who chose only A or only B are excluded.

  21. 21.

    When amount dummies and delay dummies are used as regressors instead of the corresponding variables, similar results are obtained. The results for the money session are not presented, since the estimation routine did not converge.

  22. 22.

    However, an alternative hypothesis exists. Long-term smokers may simply experience the repeated frequent occurrence of short-term deprivation, and thus become impatient. In this case, the long-term and short-term effects of nicotine would be due to the same phenomenon.

  23. 23.

    In this interpretation, the results obtained in the real tobacco session would have to be due to a different phenomenon from time discounting; e.g. impulsiveness.

  24. 24.

    This addendum has been newly written for this book chapter.

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Correspondence to Yoshiro Tsutsui .

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Appendix

Appendix

1.1 A1. Definition of Variables Used in Regressions

Variable name

Explanation

D_SMOKER

Smoker dummy variable: 1 when subjects is smoker, 0 otherwise

D_DEPRIVATION

Deprivation dummy variable: 1 when subjects is nicotine deprived, 0 otherwise

DELAY

Time of earlier reward

D_DELAY_M2

Delay dummy variable in money session: 1 when delay is 1 week, 0 otherwise

D_DELAY_M3

Delay dummy variable in money session: 1 when delay is 2 weeks, 0 otherwise

D_DELAY_M4

Delay dummy variable in money session: 1 when delay is 3 weeks, 0 otherwise

D_DELAY_M5

Delay dummy variable in money session: 1 when delay is 4 weeks, 0 otherwise

D_DELAY_T2

Delay dummy variable in tobacco sessions: 1 when delay is 10 min, 0 otherwise in real tobacco session, 1 when delay is 1 h, 0 otherwise in hypothetical tobacco session

D_DELAY_T3

Delay dummy variable in tobacco sessions: 1 when delay is 20 min, 0 otherwise in real tobacco session, 1 when delay is 3 h, 0 otherwise in hypothetical tobacco session

D_DELAY_T4

Delay dummy variable in tobacco sessions: 1 when delay is 30 min, 0 otherwise in real tobacco session, 1 when delay is 12 h, 0 otherwise in hypothetical tobacco session

D_DELAY_T5

Delay dummy variable in tobacco sessions: 1 when delay is 40 min, 0 otherwise in real tobacco session, 1 when delay is 24 h, 0 otherwise in hypothetical tobacco session

AMOUNT

Amount of earlier rewards

D_AMOUNT_M2

Delay amount variable in money session: 1 when amount is 2,000 yen, 0 otherwise

D_AMOUNT_M3

Delay amount variable in money session: 1 when amount is 3,000 yen, 0 otherwise

D_AMOUNT_T2

Delay amount variable in tobacco sessions: 1 when amount is 2 puffs, 0 otherwise

D_AMOUNT_T3

Delay amount variable in tobacco sessions: 1 when amount is 0.5 cigarettes, 0 otherwise

D_AMOUNT_T4

Delay amount variable in tobacco sessions: 1 when amount is 1 cigarettes, 0 otherwise

D_AMOUNT_T5

Delay amount variable in tobacco sessions: 1 when amount is 1.5 cigarettes, 0 otherwise

RETURN

Return of later reward

D_RETURN_M4

Delay return variable in money session: 1 when return is 100 %, 0 otherwise

  1. (continued)

Variable name

Explanation

D_RETURN_M5

Delay return variable in money session: 1 when return is 150 %, 0 otherwise

D_RETURN_M6

Delay return variable in money session: 1 when return is 200 %, 0 otherwise

D_RETURN_M7

Delay return variable in money session: 1 when return is 300 %, 0 otherwise

1.2 A2. Supplementary Data

Supplementary data associated with this chapter can be found, in the online version, at http://dx.doi.org/10.1016/j.socec.2013.4.005.

1.3 Addendum: Two Experiments Related to the Experiment in the Text

In this addendum, we introduce two experiments related to the experiment described in the text of this chapter. One is our future work, and the other is a past experiment that served as a foundation for this study.

1.4 B1. Neuroeconomics Experiment

It will be interesting to apply the present study to a neuroeconomics experiment. To define the brain areas and networks correlated with intertemporal choice is an important topic of neuroeconomics. For example, McClure et~al. (2004), using fMRI neuroimaging, found that two separate systems are involved in intertemporal decisions. One of these systems is comprised of the “beta areas,” which include the limbic and paralimbic cortical structures. McClure et~al. demonstrated that this structure is activated when people make intertemporal decisions, including decisions with immediate rewards. The other system is comprised of the “delta areas”, including the lateral prefrontal and parietal areas. This system is activated in response to choices that do or do not include immediate rewards. Kable and Glimcher (2007) also showed that the activities in the ventral striatum, medial prefrontal cortex and posterior cingulate cortex are positively correlated with the amount of rewards and negatively correlated with the delay. Both of the studies focused on general human behavior and did not focus on specific subject groups such as smokers. On the other hand, Peters et~al. (2011) and Luo et~al. (2010) found that the neural activity in the ventral striatum of smokers is significantly lower than that of non-smokers when faced with intertemporal choices that involve delay.

There are also some fMRI studies related to nicotine addiction, but these do not involve intertemporal choice. For example, Beaver et~al. (2011) separated subjects into two conditions after deprivation of smoking for 8 h. Their subjects were told to do a cognitive task after being administered either nicotine or placebo tablets. Beaver found that the activity of dopamine circuits such as the ventromedial prefrontal cortex and posterior cingulate cortex were significantly increased in the control group with the placebo tablet.

McClernon et~al. (2009) examined brain activity when smoking cues were showed to subjects who were under 24 h smoking deprivation. They found that the activities of brain areas related to visual sensory processing, attention, and action planning, such as the left occipital gyrus and the bilateral precuneus, were increased by smoking deprivation. In addition, they reported that the degree of pre-scan craving and the activation of the right dorsomedial prefrontal cortex were positively correlated.

To reveal the neurological basis of the influence of nicotine on intertemporal choice will be worthwhile work. Just like our present laboratory experiment, the neuroimaging work will be able to find the correlates of the effects of nicotine concentration in the long-run (by comparing smokers and non-smokers), and also in the short-run (by comparing deprived and non-deprived smokers). Furthermore, it may be possible to find different correlates in the different domains: money and tobacco. In our future neural experiment, we predict that the same areas as in the previous studies noted above will be activated by smoking deprivation, and we expect to find a neural foundation for the domain effects observed in our present behavioral experiment.

1.5 B2. Preliminary Experiment in Waseda University

We conducted an experiment in Waseda University prior to the present Osaka University experiment. In the Waseda experiment, we also had three sessions: real tobacco, hypothetical tobacco, and money. The basic setup in the Waseda experiment was quite similar to the one we used at Osaka University. However, an important difference was that we did not allow subjects to smoke during the resting time between the sessions. Since the experiment lasted about 3 h, we inadvertently imposed 3 h of smoking deprivation on the subjects in the non-deprived condition. Therefore, in the Waseda experiment, the “deprived” condition was a long-period deprivation condition, and the “non-deprived” condition was actually a short-period deprivation condition. Since this is not what we wanted to do, we reconstructed our experiment to solve this and other weaknesses (not reported here).

The details of experimental design are of paramount importance. Experimenters should examine them, considering all relevant possibilities. However, some problems are often not recognized until an experiment is actually conducted. Thus, preparatory experiments are usually extremely helpful to the eventual success of a study.

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Yamane, S. et al. (2016). Smokers, Smoking Deprivation, and Time Discounting. In: Ikeda, S., Kato, H., Ohtake, F., Tsutsui, Y. (eds) Behavioral Economics of Preferences, Choices, and Happiness. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55402-8_10

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