Audio Podcast
The Economics of Pricing: Can Higher Prices Stimulate Product Use?
May 1, 2007The current practice of charging money for life-saving health products in developing countries is a source of controversy among policymakers. Opponents argue that the practice is unfair and that fees will result in goods only reaching the richest of the poor. Advocates of pricing, including non-governmental organizations, argue that free products will not be valued or used. New research suggests charging money for these products could lead to more intensive product use, and thus greater health benefits.
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