Cigarette Smoking and Market Failure - The University of West 2025

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Rational choice theory (and the adjustments that have been proposed to deal with addictive behaviors) assumes stable preferences, foresight, knowledge, and adequate cognitive abilities to make the decision to start or continue smoking.
The highest rates of smoking are found in students majoring in Communications, languages, or Cultural Studies, (37.4%) and the lowest rates of smoking are found in students majoring in Mathematics, Engineering, and sciences (21.0%).
42 million men and women currently smoke. American Indians and Alaska Natives have the highest smoking rates, while Asians and Hispanics have the lowest. Individuals with undergraduate and graduate degrees are least likely to smoke. Smoking rates vary in different regions.
American Indians and Alaska Natives have the highest smoking rate of any racial or ethnic group. For about three in four (77.4%) African-American smokers, the usual cigarette is menthol, over three times the rate as among whites (23.0%).
In short, the immense profits cigarette companies make from selling a product that kills one in two of its users9 is not because of some breakthrough intellectual property or other typical marketplace advantage. Rather, it is a classic example of market failure.
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The results from our study indicate that the majority of the decline in per capita cigarette consumption was from current smokers smoking less ( 50%, particularly among younger smokers from 19901996), followed by a reduced proportion of ever smokers in the population (30%).
Indigenous peoples (American Indians/Alaska Natives) smoke commercial tobacco cigarettes at a rate of 15.0% and have the highest prevalence of cigarette smoking among all racial/ethnic groups in the U.S.

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