Can higher prices stimulate product use?

evidence from a field experiment in zambia

Can higher prices stimulate product use?
Nava Ashraf, Nava Ashraf
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Last edited by MARC Bot
December 19, 2020 | History

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 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"--National Bureau of Economic Research web site.

Publish Date
Language
English

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Edition Availability
Cover of: Can higher prices stimulate product use?
Cover of: Can higher prices stimulate product use?
Can higher prices stimulate product use?: evidence from a field experiment in zambia
2007, National Bureau of Economic Research
electronic resource in English
Cover of: Can higher prices stimulate product use?
Cover of: Can higher prices stimulate product use?
Can higher prices stimulate product use?: evidence from a field experiment in Zambia
2007, Division of Research, Harvard Business School
in English
Cover of: Can higher prices stimulate product use?

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Book Details


Edition Notes

Title from PDF file as viewed on 8/13/2007.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.

Published in
Cambridge, MA
Series
NBER working paper series -- working paper 13247, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13247.

Classifications

Library of Congress
HB1

The Physical Object

Format
[electronic resource]

ID Numbers

Open Library
OL31800369M
LCCN
2007616385

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December 19, 2020 Created by MARC Bot Imported from Library of Congress MARC record