Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia

@article{Ashraf2007CanHP,
  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},
  year={2007}
}
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… 
Pitfalls of Pressure in Promoting Product Use: Evidence from a Sales Experiment in India
Many goods such as mosquito bednets have large health benefits but are underused. To increase consumption of these products, organizations frequently use door-to-door marketing, which can induce
To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda
In a field experiment in Uganda, we find that demand after a free distribution of three health products is lower than after a sale distribution. This contrasts with work on insecticide-treated bed
Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana
TLDR
This work uses the Becker-DeGroot-Marschak (BDM) mechanism to estimate willingness to pay for and heterogeneous impacts of clean water technology through a field experiment in Ghana and explores differences between BDM and take-it-or-leave-it valuations.
nformation and subsidies : Complements or substitutes ?
Does providing information about a product influence the impact of price subsidies on purchases? This question is particularly relevant for health products in developing countries where both
Targeting health subsidies through a nonprice mechanism: A randomized controlled trial in Kenya
TLDR
A randomized controlled trial of a screening mechanism that combines the free provision of chlorine solution for water treatment with a small nonmonetary cost (household vouchers that need to be redeemed monthly in order) substantially improving the trade-off between overinclusion and overexclusion.
Ordeal Mechanisms and Training in the Provision of Subsidized Products in Developing Countries
The cost-effectiveness of policies providing welfare-enhancing products for free or at highly subsidized prices is often compromised by the fact that many individuals do not use the products
Can Discounted Withdrawal Fees Catalyse Mobile Money Usage: Field Experimental Evidence from Gambia
This is a draft final project report on price subsidy and digital payments system in Gambia. Underutilization of financial products due to transaction cost or lack of information is an issue of huge
...
...

References

SHOWING 1-10 OF 115 REFERENCES
Placebo Effects of Marketing Actions: Consumers May Get What They Pay For
The authors demonstrate that marketing actions, such as pricing, can alter the actual efficacy of products to which they are applied. These placebo effects stem from activation of expectancies about
Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment
It is widely believed that cost-sharing - charging a subsidized, positive price - for a health product is necessary to avoid wasting resources on those who will not use or do not need the product. We
Zero as a Special Price: The True Value of Free Products
When faced with a choice of selecting one of several available products or possibly buying nothing, according to standard theoretical perspectives, people will choose the option with the highest
Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment
We conducted a natural field experiment to explore the effect of price changes on charitable contributions. To operationalize our tests, we examine whether an offer to match contributions to a
Pricing and the psychology of consumption.
TLDR
It is argued that the relationship between pricing and consumption lies at the core of customer strategy, and new approaches to pricing--how and when to charge for goods and services--that may boost consumption are offered.
The simple analytics of contraceptive social marketing.
The Impact of Consumer Loss Aversion on Pricing
We develop a model in which a profit-maximizing monopolist with uncertain cost of production sells to loss-averse, yet rational, consumers. We first introduce (portable) techniques for analyzing the
Price and Advertising Signals of Product Quality
We present a signaling model, based on ideas of Phillip Nelson, in which both the introductory price and the level of directly "uninformative" advertising or other dissipative marketing expenditures
Do Workers Work More If Wages are High? Evidence from a Randomized Field Experiment
Most previous studies on intertemporal labor supply found very small or insignificant substitution effects. It is not clear, however, whether these results are due to institutional constraints on
Cash versus Kind, Self-selection, and Efficient Transfers
This paper investigates second-best (transfers in kind) and third-best (subsidies and taxes) Pare to optima in a simple model were government lacks full information ab out consumer types (who is
...
...