Can higher prices stimulate product use?: Evidence from a field experiment in Zambia
The controversy over whether and how much to charge for health products in the developing world rests, in part, on whether higher prices can increase use. We test this hypothesis in a field experiment in Zambia using door-to-door marketing of a home water purification solution. Our methodology separ...
Gespeichert in:
| Hauptverfasser: | , , |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Cambridge, Mass.
National Bureau of Economic Research
2007
|
| Schriftenreihe: | Working paper series / National Bureau of Economic Research
13247 |
| Online-Zugang: | Volltext |
| Zusammenfassung: | The controversy over whether and how much to charge for health products in the developing world rests, in part, on whether higher prices can increase use. We test this hypothesis in a field experiment in Zambia using door-to-door marketing of a home water purification solution. Our methodology separates the screening effect of prices (charging more changes the mix of buyers) from the psychological effect of prices (charging more stimulates greater use for a given buyer). We find that higher prices screen out those who use the product less. The amount paid does not have a psychological effect on use, but there is some evidence that the act of paying increases use. We use our data to estimate an economic model of product use, simulate counterfactuals, and develop tentative implications for pricing policy. |
| Beschreibung: | Literaturverz. S. 34 - 38 |
| Beschreibung: | 60 S. Ill., graph. Darst. 22 cm |
Internformat
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| 520 | |a The controversy over whether and how much to charge for health products in the developing world rests, in part, on whether higher prices can increase use. We test this hypothesis in a field experiment in Zambia using door-to-door marketing of a home water purification solution. Our methodology separates the screening effect of prices (charging more changes the mix of buyers) from the psychological effect of prices (charging more stimulates greater use for a given buyer). We find that higher prices screen out those who use the product less. The amount paid does not have a psychological effect on use, but there is some evidence that the act of paying increases use. We use our data to estimate an economic model of product use, simulate counterfactuals, and develop tentative implications for pricing policy. | ||
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| spelling | Ashraf, Nava Verfasser (DE-588)130515140 aut Can higher prices stimulate product use? Evidence from a field experiment in Zambia Nava Ashraf ; James Berry ; Jesse M. Shapiro Cambridge, Mass. National Bureau of Economic Research 2007 60 S. Ill., graph. Darst. 22 cm txt rdacontent n rdamedia nc rdacarrier Working paper series / National Bureau of Economic Research 13247 Literaturverz. S. 34 - 38 The controversy over whether and how much to charge for health products in the developing world rests, in part, on whether higher prices can increase use. We test this hypothesis in a field experiment in Zambia using door-to-door marketing of a home water purification solution. Our methodology separates the screening effect of prices (charging more changes the mix of buyers) from the psychological effect of prices (charging more stimulates greater use for a given buyer). We find that higher prices screen out those who use the product less. The amount paid does not have a psychological effect on use, but there is some evidence that the act of paying increases use. We use our data to estimate an economic model of product use, simulate counterfactuals, and develop tentative implications for pricing policy. Berry, James Verfasser (DE-588)13281210X aut Shapiro, Jesse M. Verfasser (DE-588)124526403 aut Erscheint auch als Online-Ausgabe National Bureau of Economic Research <Cambridge, Mass.> NBER working paper series 13247 (DE-604)BV002801238 13247 http://papers.nber.org/papers/w13247.pdf kostenfrei Volltext |
| spellingShingle | Ashraf, Nava Berry, James Shapiro, Jesse M. Can higher prices stimulate product use? Evidence from a field experiment in Zambia |
| title | Can higher prices stimulate product use? Evidence from a field experiment in Zambia |
| title_auth | Can higher prices stimulate product use? Evidence from a field experiment in Zambia |
| title_exact_search | Can higher prices stimulate product use? Evidence from a field experiment in Zambia |
| title_exact_search_txtP | Can higher prices stimulate product use? Evidence from a field experiment in Zambia |
| title_full | Can higher prices stimulate product use? Evidence from a field experiment in Zambia Nava Ashraf ; James Berry ; Jesse M. Shapiro |
| title_fullStr | Can higher prices stimulate product use? Evidence from a field experiment in Zambia Nava Ashraf ; James Berry ; Jesse M. Shapiro |
| title_full_unstemmed | Can higher prices stimulate product use? Evidence from a field experiment in Zambia Nava Ashraf ; James Berry ; Jesse M. Shapiro |
| title_short | Can higher prices stimulate product use? |
| title_sort | can higher prices stimulate product use evidence from a field experiment in zambia |
| title_sub | Evidence from a field experiment in Zambia |
| url | http://papers.nber.org/papers/w13247.pdf |
| volume_link | (DE-604)BV002801238 |
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