Table 2

Model input assumptions

T&T effectiveness (λ)0.6
Industry response
 Pre-T&T illicit price proportion of economy price (ρT−1)0.7
 Post-T&T illicit price proportion of economy price (ρT)0.8
 % increase in NOT price for legal segments (α)0

  • NOT, net-of-tax; T&T, track and trace.