Please use this form to submit your study for inclusion into our database. It will be checked by a member of the Innovation Growth Lab team, who may be in contact to ask for more information. Your email address * Your name * Title * The name of the study Short summary A randomised field experiment in Kenya uses differing levels of subsidies for an innovative bed net to suggest that temporary subsidies help short-term adoption rates of new (health) technologies and can perhaps have an effect on long-term adoption rates due to the learning experience. A brief description of the project's goals and its current state Abstract <p>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.</p> The full abstract of the study, if available Links http://onlinelibrary.wiley.com/doi/10.3982/ECTA9508/epdf Links to any published papers and related discussions Authors * Affiliations Academic and other institutes that the authors of the study are members of Delivery partner Organisations involved in delivering the trial, if appropriate Year Year Year199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 Month MonthJanFebMarAprMayJunJulAugSepOctNovDec Day Day12345678910111213141516171819202122232425262728293031 Journal Journal publishing the study, if available Publication stage * Working Paper Published Ongoing Research Forthcoming Discussion Paper Research theme * Entrepreneurship Innovation Business Growth Country Country or countries where this study took place. Topics What sort of topics does the study cover? Sample attributes Hypotheses / research question What is the effect of one-off subsidies for new health innovations on demand, over time and across individuals? Sample Trial population and sample selection Households with children in 6 rural enumeration areas in the Busia District in Western Kenya. Number of treatment groups Size of treatment groups 599 households took part in Phase 2. Size of control group Unit of analysis Clustered? Yes No Cluster details Trial attributes Treatment description During Phase 1 households in the Busia District, Western Kenya, were given vouchers of varying (randomly assigned) discount levels for Olyset long-lasting insecticide-treated bed net. The Olyset net is a new type of bed net that lasts longer and is more comfortable than traditional bed nets. These nets were not availably in any retailers in the area and could only be bought at participating retailers if buyer had a voucher. In Phase 2, participating households in four of the 6 areas were given a voucher for the Olyset bed net at a set price, slightly higher than traditional bed nets. The set price was the same for all households in these four areas. Rounds of data collection Baseline data collection and method Trained enumerators administered surveys with the female or male head of participating households. Data collection method and data collected Evaluation Outcome variables <p>Olyset bed net purchase, olyset bed net usage.</p> Results <p>In Phase 1, data shows the initial adoption of the Olyset bed net is very price sensitive. Households were much more likely to redeem their voucher and buy the net if they received a higher subsidy. Evidence suggests some spillover effects: households with neighbours who received high subsidies were more likely to redeem their voucher. In Phase 2, the evidence shows a small, but positive, effect of the high subsidy voucher for purchasing a Olyset bed net at the set price. However, it is notable that the take-up rate for the bed nets at the set price in phase 2 is not significantly lower for the high subsidy group compared to the low subsidy group. This could mean that the high subsidy group's willingness to pay has increased - especially as the bed net they purchase in Phase 2 is likely to be a second one (whereas for those in the low subsidy group the bed net purchased in Phase 2 is likely to be their first).</p> Intervention costs Not available. Cost benefit ratio Reference Dupas, P., 2014. 'Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment'. Econometrica, Econometric Society, vol. 82(1), pages 197-228, 01. Citation for use in academic references
