“…When taxes increase differentially between cigarettes and other tobacco products, consumers may partly or totally move their individual demand to less-taxed tobaccobased substitutes such as cigars, smokeless cigarettes, and hand-rolled cigarettes (Mindell et Whynes, 2000;Delnevo, Foulds et al, 2005;Tauras, Powell et al, 2007). They may also turn to cheaper brands to counter the effects of value-based taxes (Nicolás and Domínguez, 2006), and these effects have been shown to be strongest in younger consumers (Lois et al, 1998). Third, Adda and Cornaglia (2006) show that consumers may react to a tobacco tax increase by modifying their smoking behavior to take in more nicotine per cigarette smoked.…”