To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda

Greg Fischer, Dean Karlan, Margaret McConnell and Pia Raffler

No 169540, Center Discussion Papers from Yale University, Economic Growth Center

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: Consumer/Household Economics; Demand and Price Analysis; Health Economics and Policy; Institutional and Behavioral Economics; Marketing; Public Economics (search for similar items in EconPapers)
Pages: 46
Date: 2014-05-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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https://ageconsearch.umn.edu/record/169540/files/cdp1041R.pdf (application/pdf)

Related works:
Working Paper: To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda (2014)
Working Paper: To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda (2014)
Working Paper: To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda (2014)
Working Paper: To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:yaleeg:169540

DOI: 10.22004/ag.econ.169540

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