The 13th World Conference on Tobacco OR Health

Objective: Analyze the impact of monopolistic tobacco market structure versus free competition tobacco market structure on smokers' purchasing behavior and price paid for cigarettes in Thailand and Malaysia.

Methods: Using cross sectional data collected among a representative sample of smokers in Thailand and Malaysia in 2005, we analyzed price paid for cigarettes, tobacco products preferences, brand proliferation, place and form of purchase.

Results: Smokers under the Thai Tobacco Monopoly have higher preference for roll-your-own cigarettes, face higher cigarette prices with less price variation, have fewer cigarette brand choices, and are subject to more concentrated distribution. Our findings support the hypothesis that the presence of tobacco monopoly restricts cigarette supply and keeps cigarette prices high. Given the negative relationship between cigarette prices and smoking, monopolistic structure of Thai cigarette market is more beneficial to public health than the free market structure of cigarette market in Malaysia.