Time Cost and Demand: Implications for Public Policy

Overviewing the exponential model of demand and introducing a simplification that solves issues of span, scale, and zeros

One of the most successful models of describing the decay in commodity consumption as a function of cost across multiple domains is the exponential model introduced by Hursh and Silberberg (2008). This model formulates the value of a commodity by including a "standardized price" adjustment. This adjustment allows for a theoretically scale-invariant parameter to estimate a normalized decay (α, the sensitivity to changes in price) in commodity consumption that was detangled from an organism's consumption when a commodity is free (Q₀). This scale-invariant parameter is sometimes referred to as the essential value (EV), which is generally represented as the inverse of α. However, the Hursh and Silberberg (HS) model has various shortcomings, notably as a result of the span parameter k and its influence on interpretations of α and, therefore, of essential value. We present an overview of the standardized price/real cost adjustment and challenges of and potential remedies to k within the HS framework and propose a simplified exponential model with normalized decay (Equation 10). The simplified exponential equation does not include the span parameter k and allows for straightforward analytic solutions for conceptually relevant and common demand metrics. Parities between the Hursh and Silberberg model and the simplified exponential with normalized decay model are demonstrated by conversions of α values between both models. Statistical parities between the simplified exponential with normalized decay model and the exponentiated model of demand with multiple data sets are also demonstrated. This simplified model then allows for consistent interpretations of α across commodities while retaining the theoretical benefits of the Hursh and Silberberg formulation of demand and the essential value. (PsycInfo Database Record (c) 2025 APA, all rights reserved).

Experience with reduced-nicotine cigarettes and whether this decreases smoking and substitution for full-nicotine cigarettes

Studies suggest that reduced-nicotine cigarettes decrease nicotine intake and dependence. However, questions remain about reduced-nicotine cigarette abuse liability, whether reduced-nicotine cigarette exposure lowers reduced- and full-nicotine cigarette use, and whether reduced-nicotine cigarettes substitute for full-nicotine cigarettes. This randomized, double-blind laboratory study used operant behavioral economics to examine abuse liability of cigarettes with varying nicotine content. Non-treatment-seeking smokers (N = 43) self-administered reduced- (5.2, 2.4, or 1.3 mg/g) and full-nicotine (15.8 mg/g) cigarettes before and after 3 weeks of at-home exposure. Participants were randomized to full-nicotine or one of the reduced-nicotine cigarettes to determine the effect of exposure on abuse liability and substitutability. Abuse liability was assessed in single-commodity sessions, and substitutability was measured in concurrent-commodity sessions. In the self-administration sessions, concurrently available reduced-nicotine cigarettes attenuated full-nicotine cigarette demand and rendered reduced-nicotine cigarettes partial substitutes for full-nicotine cigarettes. Exposure to study cigarettes for 3 weeks marginally reduced demand for reduced- and full-nicotine cigarettes irrespective of nicotine content. Results suggest a limited influence of nicotine content on smoking behavior in established smokers and highlight the role of nonpharmacological factors (e.g., taste/smell) on the maintenance of smoking. These results should be considered in determining whether a nicotine-reduction standard is a feasible path for reducing cigarette demand.

The effects of response disequilibrium on social media use: A laboratory analogue

Response disequilibrium is the perturbation of unconstrained behavior with a contingency. For example, the imposition of advertisements before or after viewing TikTok videos. The purpose of this laboratory analogue was to determine the effects of two such response disequilibrium conditions: (1) which required participants to view 5 s increments of advertisements to access 2 s increments of TikTok videos and (2) which required participants to view 5 s increments of TikTok videos to access 15 s increments of advertisements. The disequilibrium condition in (1) is called a response deficit due to the restricted access to TikTok videos relative to baseline while (2) is called a response excess due to the overabundance of advertisements relative to baseline. Additionally, participants had access to a third activity that was freely available throughout. Participants could browse images of TikTok video thumbnails while in deficit and excess. As predicted, participants increased their viewing of advertisements when TikTok was in deficit and decreased their viewing of TikTok when advertisements were in excess. Furthermore, some participants substituted TikTok with browsing during the excess of advertisements. This investigation has implications for a behavioral economic analysis of social media use and the contingency management of time spent on these platforms.

Using behavioral economics to optimize safer undergraduate late-night transportation

Many universities sponsor student-oriented transit services that could reduce alcohol-induced risks but only if services adequately anticipate and adapt to student needs. Human choice data offer an optimal foundation for planning and executing late-night transit services. In this simulated choice experiment, respondents opted to either (a) wait an escalating delay for a free university-sponsored "safe" option, (b) pay an escalating fee for an on-demand rideshare service, or (c) pick a free, immediately available "unsafe" option (e.g., ride with an alcohol-impaired driver). Behavioral-economic nonlinear models of averaged-choice data describe preference across arrangements. Best-fit metrics indicate adequate sensitivity to contextual factors (i.e., wait time, preceding late-night activity). At short delays, students preferred the free transit option. As delays extend beyond 30 min, most students preferred competing alternatives. These data depict a policy-relevant delay threshold to better safeguard undergraduate student safety.

Social familiarity and reinforcement value: a behavioral-economic analysis of demand for social interaction with cagemate and non-cagemate female rats

Rats were studied in social reinforcement procedures in which lever presses opened a door separating two adjacent spaces, permitting access to social interaction with a partner rat. The number of lever presses required for social interaction was systematically increased across blocks of sessions according to fixed-ratio schedules, generating demand functions at three different social reinforcement durations: 10 s, 30 s, and 60 s. The social partner rats were cagemates in one phase, and non-cagemates in a second phase. The rate at which social interactions were produced declined with the fixed-ratio price, and was well described by an exponential model that has been successfully employed with a range of social and non-social reinforcers. None of the main parameters of the model varied systematically with social interaction duration or with the social familiarity of the partner rat. On the whole, the results provide further evidence of the reinforcing value of social interaction, and its functional parallels with non-social reinforcers.