Author's personal copy Estimating the impact of different cigarette package warning label policies: The auction method James F. Thrasher a,b,c, ⁎ , Matthew C. Rousu d , Rafael Anaya-Ocampo b , Luz Myriam Reynales-Shigematsu b , Edna Arillo-Santillán b , Mauricio Hernández-Ávila b a Institute for Health Research & Policy, University of Illinois, Chicago, United States b Department of Tobacco Research, National Institute of Public Health, Mexico c Department of Health Promotion, Education and Behavior, School of Public Health, University of South Carolina, United States d Department of Economics, Susquehanna University, United States Abstract The study estimated the reduction in demand associated with implementing cigarette package warning labels that contain imagery illustrating the consequences of smoking. The experimental auction method was used, wherein adult smokers in Mexico (n =89) placed separate bids on two packs of cigarettes: one with a text-only warning label and the other with a warning label that included text and a graphic image. Differences in the values attributed to each pack were assessed using t-tests and multivariate regression. The pack with the graphic image had a mean attributed value which was 17% lower ($3.21 pesos) than the pack with the text-only warning, and this difference remained statistically significant within subgroups defined by sociodemographics, amount of smoking, number of quit attempts, and levels of perceived smoking risks. In the multivariate model, the difference in attributed values was greater among females than males, but no such differences were found for other sociodemographic or smoking-related variables. The consistently lower value that smokers attributed to cigarette packages with the graphic warning label indicates that these labels are likely to reduce cigarette demand. © 2007 Elsevier Ltd. All rights reserved. Keywords: Graphic warning labels; Cigarette packaging; Experimental economics; Tobacco; Adult smokers; Risk communication Addictive Behaviors 32 (2007) 2916 – 2925 ⁎ Corresponding author. Department of Health Promotion, Education and Behavior, 800 Sumter Street, Room #215, Columbia, SC 29208, United States. Tel.: +1 803 777 7096; fax: +1 803 777 6290. E-mail address: thrasher@gwm.sc.edu (J.F. Thrasher). 0306-4603/$ - see front matter © 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.addbeh.2007.05.018