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Cited by 422

The DOI matches its Crossref record; 44 of the 44 references it cites were found in a registry or an index.

Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence From a Field Experiment

Open access
·2014·Econometrica
DOI 10.3982/ecta9508
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Abstract

Short-run subsidies for health products are common in poor countries. How do they affect long-run adoption? A common fear among development practitioners is that one-off subsidies may negatively affect long-run adoption through reference-dependence: People might anchor around the subsidized price and be unwilling to pay more for the product later. But for experience goods, one-off subsidies could also boost long-run adoption through learning. This paper uses data from a two-stage randomized pricing experiment in Kenya to estimate the relative importance of these effects for a new, improved antimalarial bed net. Reduced form estimates show that a one-time subsidy has a positive impact on willingness to pay a year later inherit. To separately identify the learning and anchoring effects, we estimate a parsimonious experience-good model. Estimation results show a large, positive learning effect but no anchoring. We black then discuss the types of products and the contexts inherit for which these results may apply.

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Metadata

Venue
Econometrica
Publisher
The Econometric Society
Published
2014
Volume
82
Issue
1
Pages
197-228
ISSN
0012-9682 (ISSN-L)
DOI
10.3982/ecta9508
OpenAlex
W1559786486
Cited by
422
References
44
FWCI
102.45
Type
journal article
Language
en
Open access
bronze

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.