A. Levy, F. Neri and D. Grass, “Macroeconomic Aspects of Substance Abuse: Diffusion, Productivity and Optimal Control,” Macroeconomic Dynamics, Vol. 10, No. 2, 2006, pp. 145-164.
http://dx.doi.org/10.1017/S1365100506050140

has been cited by the following article:

• TITLE: Peer-Pressure and Rational Underage Binge-Drinking

  AUTHORS: Amnon Levy

  KEYWORDS: Minimum Age; Peer Pressure; Rationality; Binge-Drinking

  JOURNAL NAME: Theoretical Economics Letters, Vol.4 No.1, February 18, 2014

  ABSTRACT: This paper provides a utility-based definition of binge-drinking and examines the compatibility of this phenomenon with a rational decision making. Prohibition of young people’s consumption of alcohol is frequently violated by binge-drinking in groups. The analysis considers the roles of peer-pressure, full price of alcohol and crowding in underage group-drinking sessions and identifies the conditions for binge-drinking by expected utility maximizing members. Rational binge-drinking occurs when the impact of the peer-pressure on the individual member’s utility exceeds the loss of utility from the forgone spending on all other goods associated with the expected full marginal cost of consuming alcohol.