Trouble with zero: The limits of subsidizing technology adoption*

• 成果类型: Article
• 署名作者: Shukla, Pallavi; Pullabhotla, Hemant K.; Baylis, Kathy
• 署名单位: Johns Hopkins University; Stanford University; University of California System; University of California Santa Barbara; Deakin University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2022.102920
• 发表日期: 2022
• 关键词: Reference dependence; technology adoption; Agricultural subsidies; Zero price

摘要

Do users value a free technology less than one they pay for? In a two-stage randomized trial of improved grain storage technology in India, we test whether subsequent user willingness-to-pay is affected by free distribution compared to a small positive price. We find paying an initial price of zero has a strong negative effect on users' long-run willingness-to-pay but is not associated with differences in either reported use or benefits derived from the technology. The lower valuation implies a 20 to 30 percent decrease in long-run adoption, suggesting free distribution can stifle future markets for repeat-purchase goods.