{"componentChunkName":"component---src-templates-post-query-tsx","path":"/research/decision-costs-and-price-sensitivity-field-experimental-evidence-from-india/","result":{"pageContext":{"post":{"slug":"/research/decision-costs-and-price-sensitivity-field-experimental-evidence-from-india/","title":"Decision costs and price sensitivity: Field experimental evidence from India","date":"Jan 01, 2014","timeToRead":1,"description":"Poor people often exhibit puzzlingly high sensitivity to low prices of important consumer health goods. This paper proposes decision costs as one explanation: whether a person buys at a price depends on whether she carefully considers the offer, which itself depends on price. ","body":"function _extends() { _extends = Object.assign || function (target) { for (var i = 1; i < arguments.length; i++) { var source = arguments[i]; for (var key in source) { if (Object.prototype.hasOwnProperty.call(source, key)) { target[key] = source[key]; } } } return target; }; return _extends.apply(this, arguments); }\n\nfunction _objectWithoutProperties(source, excluded) { if (source == null) return {}; var target = _objectWithoutPropertiesLoose(source, excluded); var key, i; if (Object.getOwnPropertySymbols) { var sourceSymbolKeys = Object.getOwnPropertySymbols(source); for (i = 0; i < sourceSymbolKeys.length; i++) { key = sourceSymbolKeys[i]; if (excluded.indexOf(key) >= 0) continue; if (!Object.prototype.propertyIsEnumerable.call(source, key)) continue; target[key] = source[key]; } } return target; }\n\nfunction _objectWithoutPropertiesLoose(source, excluded) { if (source == null) return {}; var target = {}; var sourceKeys = Object.keys(source); var key, i; for (i = 0; i < sourceKeys.length; i++) { key = sourceKeys[i]; if (excluded.indexOf(key) >= 0) continue; target[key] = source[key]; } return target; }\n\n/* @jsxRuntime classic */\n\n/* @jsx mdx */\nvar _frontmatter = {\n  \"title\": \"Decision costs and price sensitivity: Field experimental evidence from India\",\n  \"date\": \"2014-01-01\",\n  \"template\": \"post\",\n  \"slug\": \"decision-costs-and-price-sensitivity-field-experimental-evidence-from-india\",\n  \"postedLink\": \"https://riceinstitute.org/research/decision-costs-and-price-sensitivity-field-experimental-evidence-from-india/\",\n  \"description\": \"Poor people often exhibit puzzlingly high sensitivity to low prices of important consumer health goods. This paper proposes decision costs as one explanation: whether a person buys at a price depends on whether she carefully considers the offer, which itself depends on price. \",\n  \"tags\": \"Research\",\n  \"banner\": \"\"\n};\nvar layoutProps = {\n  _frontmatter: _frontmatter\n};\nvar MDXLayout = \"wrapper\";\nreturn function MDXContent(_ref) {\n  var components = _ref.components,\n      props = _objectWithoutProperties(_ref, [\"components\"]);\n\n  return mdx(MDXLayout, _extends({}, layoutProps, props, {\n    components: components,\n    mdxType: \"MDXLayout\"\n  }), mdx(\"p\", null, \"Author: Dean Spears\"), mdx(\"p\", null, \"Published in: \", mdx(\"em\", {\n    parentName: \"p\"\n  }, \"Journal of Economic Behavior & Organization\")), mdx(\"p\", null, mdx(\"a\", {\n    parentName: \"p\",\n    \"href\": \"https://github.com/riceinstitute/content/blob/release/research/spears-2013-decision-costs%20-and-price-sensitivity-field-experimental-evidence-from-india.pdf\",\n    \"target\": \"_blank\",\n    \"rel\": \"noopener noreferrer\"\n  }, \"Download Paper\")), mdx(\"p\", null, \"Abstract:\"), mdx(\"p\", null, \"Poor people often exhibit puzzlingly high sensitivity to low prices of important consumer\\xA0health goods. This paper proposes decision costs as one explanation: whether a person\\xA0buys at a price depends on whether she carefully considers the offer, which itself depends on price. \"), mdx(\"p\", null, \"A simple model predicts that deliberation costs (1) increase sensitivity to low\\xA0prices; (2) can prevent cost-sharing from targeting products to buyers with high value; and\\xA0(3) can have larger effects on poorer people. \"), mdx(\"p\", null, \"The principal contribution of this paper is a field experiment that sold hand-washing soap in rural India. Participants were randomly\\xA0assigned to be offered soap for either a low or very low price, which was experimentally\\xA0crossed with assignment to a control group or to a treatment that required deliberation. Results matched predictions of the model: the treatment decreased price sensitivity relative\\xA0to the control group, and increased targeting of product take-up by need.\"));\n}\n;\nMDXContent.isMDXComponent = true;","tags":[{"name":"Research","slug":"research"}],"banner":null}}},"staticQueryHashes":["318001574","3787687951","3787687951"]}