Electronic cigarettes pose a competitive threat to the makers of cigarettes and other tobacco products, as well as to nicotine replacement therapies such as nicotine gum and patches. A common response to such a threat is support for government regulation to suppress competition. Predictably, cigarette manufacturers and other threatened producers, as well as the governments that earn revenue from tobacco taxes, are supporting greater regulation of electronic cigarettes that would replicate the cartel-supporting rules of the Master Settlement Agreement.
Jonathan H. Adler, Roger E. Meiners, Andrew P. Morriss & Bruce Yandle,
Baptists, Bootleggers & Electronic Cigarettes,
Yale J. on Reg.
Available at: http://digitalcommons.law.yale.edu/yjreg/vol33/iss2/1