Abstract
Study objective: The present paper describes how basic concepts of behavioral economics, such as unit price, demand curve, and price elasticity, can be applied in order to understand smoking, drinking, and drug taking behavior. Economic variables known to affect consumer behavior: price,substitutability, income, and delay discounting, and treatment implications of the concepts of behavioral economics, are discussed. Within a behavioral economics framework, in order to reduce the occurrence of drug-obtaining behavior, the behavior of persons who are drug dependent should be shaped with the use of acceptable reinforcers. The effectiveness of treatment depends on several economic factors, including substitutability between the two sources of reinforcement, and the availability of desirable complements to the acceptable reinforcers so as to maximize their effectiveness. The results of behavioral economic studies also have implications for the formulation of public policy on drug abuse.
