Discounts on Sin Goods: Opportunities and Threats

Hideto Koizumi, Business Economics and Public Policy, The Wharton School

Abstract: Our main goals are (a) to test our hypothesis that households consume greater amounts of sin goods through their stock-up behavior induced by discounts at the store, and (b) to conduct a counter-factual analysis of banning sales on sin goods for the assessment of welfare gain (or loss). We plan to use both rational agent models and behavioral models to examine policy implications for different types of agents.

Michelle Eckert is Marketing and Communications Coordinator for the Mack Institute, where she works to engage students, researchers, and corporate partners in opportunities for collaboration. Michelle received her B.A. in Art from Valparaiso University in 2007. Her background includes two AmeriCorps terms of service working to teach mathematics, computer literacy, and job readiness skills to out-of-school youth in Philadelphia, focusing particularly on promoting access to post-secondary education.