Internality

This contrasts with traditional economic theory, which makes the assumption that individuals are rational decision makers who take all personal costs into account when paying for goods and services.

Future benefits that an individual may not take into consideration include a diminished risk of heart disease and higher bone density.

[7] A major issue with creating effective legislature against negative internalities is that the tax imposed should only reflect the cost that individuals do not factor into their consumption decisions.

Another point of concern is that the group benefitting from the tax, such as smokers who want to quit, must be sizable enough to offset any backlash from tobacco companies and lobbyists.

As a result of this, in cases where products or goods are not banned, increasing access to information may not necessarily be useful for individuals with a self-control problem.