Can higher prices stimulate product use?

evidence from a field experiment in Zambia

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Can higher prices stimulate product use?
Nava Ashraf
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Last edited by Open Library Bot
December 3, 2010 | History

Can higher prices stimulate product use?

evidence from a field experiment in Zambia

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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. 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.

Publish Date
Language
English
Pages
60

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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?

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Book Details


Edition Notes

"July 2007."

Includes bibliographical references (p. 34-38).

Also available in PDF from the NBER world wide web site (www.nber.org).

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

The Physical Object

Pagination
60 p. :
Number of pages
60

ID Numbers

Open Library
OL17635369M
OCLC/WorldCat
163598713

Source records

Oregon Libraries MARC record

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December 3, 2010 Edited by Open Library Bot Added subjects from MARC records.
December 10, 2009 Created by WorkBot add works page