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How do minimum cigarette price laws affect cigarette prices at the retail level?

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How do minimum cigarette price laws affect cigarette prices at the retail level?

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Feighery EC; Ribisl KM; Schleicher NC; Zellers L; Wellington N Public Health Institute, Oakland, California, USA. feighery@pacbell.net OBJECTIVES: Half of US states have minimum cigarette price laws that were originally passed to protect small independent retailers from unfair price competition with larger retailers. These laws prohibit cigarettes from being sold below a minimum price that is set by a formula. Many of these laws allow cigarette company promotional incentives offered to retailers, such as buydowns and master-type programmes, to be calculated into the formula. Allowing this provision has the potential to lower the allowable minimum price. This study assesses whether stores in states with minimum price laws have higher cigarette prices and lower rates of retailer participation in cigarette company promotional incentive programmes. DESIGN: Retail cigarette prices and retailer participation in cigarette company incentive programmes in 2001 were compared in eight states with

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