Table 2

Association between cigarette price and minimum price laws: results from Nielsen Retail Scanner Data 2007–2014 (19 markets)

25th price centile
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Variables	Baseline result	Number of parties regulated >1	Total markup across standard distribution	Cartage applied to base cost	Any taxes applied to base cost	Other fees applied to base cost	State does not allow coupons
Minimum pricing law	0.273*** (0.0267)	0.463*** (0.0277)	0.495*** (0.0375)	0.315*** (0.0268)	0.442*** (0.0290)	0.282*** (0.0279)	0.272*** (0.0277)
State cigarette excise tax rate	0.0113*** (0.000126)	0.0125*** (0.000168)	0.0113*** (0.000125)	0.0112*** (0.000125)	0.0118*** (0.000131)	0.0114*** (0.000130)	0.0113*** (0.000135)
MPL-component		−0.404*** (0.0337)	−0.122*** (0.0141)	−0.434*** (0.0278)	−0.331*** (0.0305)	−0.0561* (0.0311)	0.00580 (0.0343)
Observations	600	600	600	600	600	600	600
R²	0.929	0.940	0.935	0.936	0.940	0.929	0.929
	(8)	(9)	(10)	(11)	(12)	(13)	(14)
Variables	Consumers cannot receive below-cost coupon	Below-cost combination sales not allowed	Trade discounts may not be used	Trade discount definition does not include buydowns, etc	Parties may not meet competitor pricing	Promotion restrictions applied presale	Promotion restrictions applied at sale
Minimum pricing law	0.272*** (0.0277)	0.00932 (0.0299)	0.253*** (0.0266)	0.353*** (0.0442)	0.253*** (0.0266)	0.548*** (0.0546)	0.278*** (0.0376)
State cigarette excise tax rate	0.0113*** (0.000135)	0.0114*** (0.000129)	0.0110*** (0.000123)	0.0113*** (0.000128)	0.0110*** (0.000123)	0.0110*** (0.000123)	0.0113*** (0.000135)
MPL-component	0.00580 (0.0343)	0.321*** (0.0276)	0.295*** (0.0491)	−0.0873** (0.0401)	0.295*** (0.0491)	−0.295*** (0.0491)	−0.00580 (0.0343)
Observations	600	600	600	600	600	600	600
R²	0.929	0.936	0.932	0.929	0.932	0.932	0.929
50th price centile
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Variables	Baseline Result	Number of Parties Regulated >1	Total Markup Across Standard Distribution	Cartage Applied to Base Cost	Any Taxes Applied to Base Cost	Other Fees Applied to Base Cost	State Does Not Allow Coupons
Minimum pricing law	0.208*** (0.0263)	0.424*** (0.0287)	0.437*** (0.0365)	0.259*** (0.0261)	0.411*** (0.0293)	0.219*** (0.0281)	0.207*** (0.0280)
State cigarette excise tax rate	0.0114*** (0.000122)	0.0128*** (0.000163)	0.0114*** (0.000120)	0.0113*** (0.000120)	0.0120*** (0.000123)	0.0115*** (0.000123)	0.0114*** (0.000128)
MPL-component		−0.460*** (0.0353)	−0.126*** (0.0145)	−0.524*** (0.0316)	−0.398*** (0.0315)	−0.0696** (0.0296)	0.00624 (0.0311)
Observations	600	600	600	600	600	600	600
R²	0.931	0.945	0.936	0.940	0.946	0.931	0.931
	(8)	(9)	(10)	(11)	(12)	(13)	(14)
Variables	Consumers Cannot Receive Below-Cost Coupon	Below-Cost Combination Sales Not Allowed	Trade Discounts May Not Be Used	Trade Discount Definition Does Not Include Buy Downs, etc	Parties May Not Meet Competitor Pricing	Promotion Restrictions Applied Pre-Sale	Promotion Restrictions Applied at Sale
Minimum pricing law	0.207*** (0.0280)	−0.0717** (0.0300)	0.185*** (0.0262)	0.233*** (0.0408)	0.185*** (0.0262)	0.522*** (0.0508)	0.213*** (0.0318)
State cigarette excise tax rate	0.0114*** (0.000128)	0.0115*** (0.000123)	0.0111*** (0.000117)	0.0114*** (0.000124)	0.0111*** (0.000117)	0.0111*** (0.000117)	0.0114*** (0.000128)
MPL-component	0.00624 (0.0311)	0.341*** (0.0303)	0.337*** (0.0469)	−0.0271 (0.0387)	0.337*** (0.0469)	−0.337*** (0.0469)	−0.00624 (0.0311)
Observations	600	600	600	600	600	600	600
R²	0.931	0.938	0.934	0.931	0.934	0.934	0.931

Robust SEs in parentheses.
***p<0.01, **p<0.05, *p<0.1.
Promotion Variables Applied Pre-Sale (Trade Discount Used to Reduce Base Cost+Trade Discount Definition Includes Buydowns+State Permits Distributors to Meet Competitor Pricing+State Restricts Meeting of Competitor Pricing).
Promotions Applied at Sale (Coupons May Reduce Price Below Cost+Number of Parties Distributing Below-Cost Coupons to Consumer+Below-Cost Combination Sales Allowed+Restrictions on Below-Cost Combination Sales).
Control Variables not Shown: Quarter and Year Fixed Effects.