"One method of overcoming the difficult informational requirements of the allocation models described above is by enacting a requirement that anyone wanting to purchase cigarettes must first purchase a 'cigarette card'. The card, which could be based on the same magnetic strip (or computer chip) technology used for credit cards and ATM cards, would be issued to any legal-aged smoker who wanted to buy cigarettes and would have to be presented by the smoker each time she purchased cigarettes. A reaction of many readers may well be that our proposal gives too much information to government agencies, therefore creating a 'Big Brother' problem. We sympathize with that concern, but we believe the problem is not as significant as it may appear initially. First, it is not clear that the sort of information that the cigarette card system would generate is any different from the sort of information that the American public routinely provides to government and private agencies. In other words, it may be too late to worry about the sort of privacy concern that this proposal raises."
"The Costs of Cigarettes: The Economic Case for Ex Post Incentive-Based Regulation", Yale Law Journal, Vol. 107, No. 8 (March 1998), pp. 1292 and 1294.
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