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},
  author={Nava Ashraf and James Berry and Jesse M. Shapiro},
  journal={NBER Working Paper Series},
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… 
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