To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda - Working Paper 387

Greg Fischer
Authors registered in the RePEc Author Service: Dean Karlan

No 387, Working Papers from Center for Global Development

Abstract: 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 nets, highlighting the importance of product characteristics in determining pricing policy. We put forward a model to illustrate the potential tension between two important factors, learning and anchoring, and then test this model with three products selected specifically for their variation in the scope for learning. We find the rank order of shifts in demand matches with the theoretical prediction, although the differences are not statistically significant.

Keywords: subsidies; health; pricing; learning (search for similar items in EconPapers)
JEL-codes: D11 D12 D83 I11 I18 O12 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2014-11
New Economics Papers: this item is included in nep-exp and nep-hea
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:cgd:wpaper:387

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