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Price Sensitivity and Information Barriers to the Take-up of Naloxone

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  • Mireille Jacobson
  • David Powell

Abstract

We conducted a field experiment that randomized advertisements, advertisement content, and prices across 2,204 counties in the United States to study the impacts on online purchases of naloxone, an opioid overdose reversal drug. Advertising increased website users but only impacted purchases when combined with a price reduction. Messages emphasizing the discreet nature of online sales had no additional impact on purchases. Comparing counties with advertisements featuring a highly discounted price to those featuring the full price, we estimate a price elasticity of demand for online naloxone of −1.3. Price is a significant barrier to online purchases of this lifesaving medication.

Suggested Citation

  • Mireille Jacobson & David Powell, 2024. "Price Sensitivity and Information Barriers to the Take-up of Naloxone," American Economic Journal: Economic Policy, American Economic Association, vol. 16(4), pages 463-490, November.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:4:p:463-90
    DOI: 10.1257/pol.20230135
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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