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Economics of Sex and Drugs
Lecture #2, "Economics of Drug Addiction"
12
Economics
Undergraduate 4
09/02/2011

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Term
Alfred Marshall talks about addictive behavior in Principles of Economics:
Definition
people won't necessarily buy more of a product because it's price falls, and if they grow up using a product when it's price is low, they won't stop buying it just because it's price rises.
Term
Marshall's three fundamental aspects of addiction:
Definition
1.) physical response (tolerance)
2.) irreversibility (withdrawal)
3.) positive effects of habits (reinforcement)
Term
Economists view an addict as:
Definition
myopic, imperfectly rational individual
Term
The United Nations Drug Control Program cites that the most commonly used substance is:
Definition
Cannabis followed by amphetamine-type substances.
Term
Non-economists define addiction as:
Definition
a behavior over which an individual has impaired control with harmful consequences.
Term
The first group's theories:
Definition
"attempt to provide broad insights into the conceptualization of addiction"
Term
The second group's theories:
Definition
"explain why particular stimuli have a propensity to becoming a focus for addiction"
Term
The third group's theories:
Definition
"why particular individuals are more susceptible to addiction than others."
Term
The fourth group's theories:
Definition
“the environmental and social conditions
which make addiction more or less
likely”
Term
The fifth group's theories:
Definition
“focuses on recovery and relapse…some are broad
perspectives, others focus on effects of withdrawal from particular stimuli such as drugs; still others focus on individual factors and others seek to model environmental influences."
Term
A good is addictive if:
Definition
an increase in the stock of past consumption results in an increase in current consumption, ceteris paribus.
Term
rationalizing:
Definition
seek an explanation which identifies the individual's objectives, preferences, and constraints so that a rule can be derived to predict the behavior.
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