Is Zero a Special Price? Evidence from Child Health Care

• 成果类型: Article
• 署名作者: Iizuka, Toshiaki; Shigeoka, Hitoshi
• 署名单位: University of Tokyo; University of Tokyo; University of Tokyo
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20210184
• 发表日期: 2022
• 页码: 381-410
• 关键词: medical-care; insurance; expenditures; demand; AGENCY; MARKET; adults; COSTS

摘要

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 inappropri-ate use of antibiotics. A co-payment, of as small as US$2 per visit, alle-viates these problems without substantially increasing financial risk. However, a zero price may be used to boost demand for highly cost-ef-fective treatments. Zero and non-zero prices should be strategically chosen to achieve specific goals. (JEL G22, H75, I11, I13, I18, J13)