Is Zero a Special Price? Evidence from Child Health Care
| Autor: | Toshiaki Iizuka, Hitoshi Shigeoka |
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| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | American Economic Journal: Applied Economics. 14:381-410 |
| ISSN: | 1945-7790 1945-7782 |
| Popis: | Do consumers react differently to zero prices? We test the presence of a zero-price effect in child health care and find that a zero price is special as it boosts demand discontinuously. A zero price affects resource allocations by encouraging healthier children to use more services and exacerbates behavioral hazard by increasing inappropriate use of antibiotics. A co-payment, of as small as US$2 per visit, alleviates these problems without substantially increasing financial risk. However, a zero price may be used to boost demand for highly cost-effective treatments. Zero and non-zero prices should be strategically chosen to achieve specific goals. (JEL G22, H75, I11, I13, I18, J13) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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