The Price is Wrong

Abstract

Charging small fees dramatically reduces access to important products for the poor. Relative to free distribution, charging even very small user fees substantially reduces adoption. There is no evidence that the act of paying for a product makes a recipient more likely to use it. In general, cost-sharing does not appear to concentrate adoption on those who need products most. Receiving a product for free can even increase willingness to pay for it later. There may be other reasons to charge.