Table 2

Cigarette profit margins (regulated vs actual)

Allocation price per pack (RMB/pack)Regulated allocation wholesale margin (a), %Actual allocation wholesale margin (a′), %
[14.6, +∞)3451.52
[10, 14.6)2940.85
[5, 10)2533.33
[3, 5)2533.33
[1.65, 3)2025.00
(0, 1.65)1517.65
  • Source: table 1 and estimated from equation (1).