TY - RPRT AU - Poutvaara, Panu AU - Siemers, Lars TI - Smoking and Social Interaction PY - 2007/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 2666 UR - https://www.iza.org/index.php/publications/dp2666 AB - We study the social interaction of non-smokers and smokers as a sequential game, incorporating insights from social psychology and experimental economics into an economic model. Social norms affect human behavior such that non-smokers do not ask smokers to stop smoking and stay with them, even though disutility from smoking exceeds utility from social interaction. Overall, smoking is unduly often accepted when accommodating smoking is the social norm. The introduction of smoking and non-smoking areas does not overcome this specific inefficiency. We conclude that smoking bans may represent a required (second-best) policy. KW - deviant behavior KW - guilt aversion KW - social norms KW - smoking policy KW - social interaction ER -