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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, either by targeting distribution to high-use households (a screening effect), or by stimulating use psychologically through a sunk-cost effect. We develop a methodology for separating these two effects. We implement the methodology in a field experiment in Zambia using door-to-door marketing of a home water purification solution. We find that higher prices screen out those who use the product less. By contrast, we find no consistent evidence of sunk-cost effects.
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Subjects
Econometric models, Economic aspects, Health products, Prices, Purification, Usage, WaterPlaces
Developing countries, ZambiaShowing 5 featured editions. View all 5 editions?
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1
Can higher prices stimulate product use?: evidence from a field experiment in Zambia
2008, Harvard Business School
- 2nd rev.
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2
Can higher prices stimulate product use?: evidence from a field experiment in Zambia
2007, National Bureau of Economic Research
in English
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3
Can higher prices stimulate product use?: evidence from a field experiment in zambia
2007, National Bureau of Economic Research
electronic resource
in English
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4
Can higher prices stimulate product use?: evidence from a field experiment in Zambia
2007, Division of Research, Harvard Business School
in English
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5
Can higher prices stimulate product use?: evidence from a field experiment in Zambia
2007, Harvard Business School
in English
- Rev.
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Book Details
Edition Notes
"Revised October 2008"--Publisher's website.
Includes bibliographical references.
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- Created November 29, 2023
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