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by greeneggs
4167 days ago
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Do you have any links? For example, Dupas writes, "The third finding from recent pricing studies is
that people need not have paid for something to
value it. Households are as likely to use their
bednet when they get it for free as when they
have to pay for it (4, 7–9). People are as likely to
use their water filter if they paid a lower price
for it (2). This is surprising for two reasons. First,
standard economic theory suggests that charging
nontrivial user fees should help target products to
those who need them the most—and thus those
most likely to put them to appropriate use. But
this reasoning breaks down when people face
credit constraints and their ability to pay is lower
than their willingness to pay. When those who
could use a product the most are too poor to pay
cash for it, higher prices screen out the poor, not
just those with lower health returns from using
the product (9). Second, it is often thought that
the act of paying itself makes people value a
product or service more; the feeling of “guilt”
from having spent money on something that is
left unused would make people more diligent
users. However, experimental studies designed
to test the importance of this psychological
phenomenon suggest that this consideration
is not important when it comes to essential
health (2, 7, 10). The cost of poor health seems
a good enough incentive to put products to
good use." Pascaline Dupas, "Getting essential health products to
their end users: Subsidize, but how much?" Science 345:1279-1281, 2014.
http://www.sciencemag.org/content/345/6202/1279.full.pdf?key... |
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