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dc.contributor.authorADDA, Jérôme
dc.contributor.authorBERLINSKI, Samuel
dc.contributor.authorBHASKAR, V.
dc.contributor.authorMACHIN, Stephen
dc.date.accessioned2011-03-07T15:53:02Z
dc.date.available2011-03-07T15:53:02Z
dc.date.issued2011
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/15955
dc.descriptionWe thank Mark Armstrong and seminar participants at Brown University, Cambridge University and Universidad Carlos III for helpful comments. Audrey Stern, Michele Savini and Warn Nurpear provided excellent research assistance.
dc.description.abstractThis paper analyzes the effects of a ban on smoking in public places upon firms and consumers. Analysis of survey data from public houses finds that the Scottish smoking ban (introduced in March 2006) reduced pub sales and harmed medium run profitability. An event study analysis of the stock market performance of pub-holding companies corroborates the negative effects of the smoking ban on firm performance. We develop a model of public good provision by firms to offer an interpretation of these findings. In the context of smoking, the public good aspect and consumer heterogeneity in preferences regarding smoking appear to be central to the problem. The model allows us to examine the appropriate form of optimal regulation and to study the welfare effect of a smoking ban. The optimal policy response ensures that some pubs be permitted to allow smoking while others are not.en
dc.description.sponsorshipFinancial help acknowledged from the Nuffield Foundation and the ESRC (grant M544285003).en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2011/09en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectregulationen
dc.subjectsmoking banen
dc.subjectmarket provision of qualityen
dc.subjectsalesen
dc.subjectpricesen
dc.subjectprofitabilityen
dc.subjectstock market performanceen
dc.subjectI18en
dc.subjectH23en
dc.subjectL51en
dc.subjectL81en
dc.titleMarket Regulation and Firm Performance: The Case of Smoking Bans in the UKen
dc.typeWorking Paperen
dc.neeo.contributorADDA|Jérôme|aut|EUI70013
dc.neeo.contributorBERLINSKI|Samuel|aut|
dc.neeo.contributorBHASKAR|V.|aut|
dc.neeo.contributorMACHIN|Stephen|aut|
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