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What is the price of prevention? New evidence from a field experiment

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  • Okeke, Edward N.
  • Adepiti, Clement A.
  • Ajenifuja, Kayode O.

Abstract

How does increasing access to treatment affect the demand for preventive testing? In this paper we present results from a field experiment in Nigeria in which we offered cervical cancer screening to women at randomly chosen prices. To test our hypothesis, we also offered women a lottery where the payoff was a subsidy towards the cost of cervical cancer treatment (conditional upon a diagnosis of cervical cancer). We find that women randomly selected to receive the conditional cancer treatment subsidy were about 4 percentage points more likely to take up screening than those in the control group. We also show that reducing the price of screening by 10 cents increased take-up by about 1 percentage point. These results offer compelling evidence that the optimal set of subsidies to increase take-up of preventive testing in developing countries, must include subsidies towards treatment costs (in addition to price subsidies).

Suggested Citation

  • Okeke, Edward N. & Adepiti, Clement A. & Ajenifuja, Kayode O., 2013. "What is the price of prevention? New evidence from a field experiment," Journal of Health Economics, Elsevier, vol. 32(1), pages 207-218.
    • Handle: RePEc:eee:jhecon:v:32:y:2013:i:1:p:207-218
    DOI: 10.1016/j.jhealeco.2012.10.001
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    Cited by:

    1. Susan Godlonton & Rebecca L. Thornton, 2013. "Learning from Others' HIV Testing: Updating Beliefs and Responding to Risk," American Economic Review, American Economic Association, vol. 103(3), pages 439-444, May.
    2. Dickey, H. & Ikenwilo, D. & Norwood, P. & Watson, V. & Zangelidis, A., 2016. "“Doctor my eyes”: A natural experiment on the demand for eye care services," Social Science & Medicine, Elsevier, vol. 150(C), pages 117-127.
    3. Aggarwal, Shilpa, 2021. "The long road to health: Healthcare utilization impacts of a road pavement policy in rural India," Journal of Development Economics, Elsevier, vol. 151(C).
    4. Michael Grimm & Renate Hartwig, 2022. "All eyes on the price: An assessment of the willingness‐to‐pay for eyeglasses in rural Burkina Faso," Health Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 1347-1367, July.
    5. Lagarde, Mylène & Riumallo Herl, Carlos, 2025. "Better together? Group incentives and the demand for prevention," LSE Research Online Documents on Economics 125349, London School of Economics and Political Science, LSE Library.
    6. Yokoo, Hide-Fumi & Arimura, Toshi H. & Chattopadhyay, Mriduchhanda & Katayama, Hajime, 2023. "Subjective risk belief function in the field: Evidence from cooking fuel choices and health in India," Journal of Development Economics, Elsevier, vol. 161(C).
    7. Iajya, Victor & Lacetera, Nicola & Macis, Mario & Slonim, Robert, 2013. "The effects of information, social and financial incentives on voluntary undirected blood donations: Evidence from a field experiment in Argentina," Social Science & Medicine, Elsevier, vol. 98(C), pages 214-223.
    8. Bensch, Gunther & Peters, Jörg, 2015. "The intensive margin of technology adoption – Experimental evidence on improved cooking stoves in rural Senegal," Journal of Health Economics, Elsevier, vol. 42(C), pages 44-63.
    9. Yufeng Li & Juanjuan Meng & Changcheng Song & Kai Zheng, 2021. "Information Avoidance and Medical Screening: A Field Experiment in China," Management Science, INFORMS, vol. 67(7), pages 4252-4272, July.
    10. Mylène Lagarde & Carlos Riumallo Herl, 2023. "Stronger together: Group incentives and the demand for prevention," Tinbergen Institute Discussion Papers 23-0010/V, Tinbergen Institute.

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    More about this item

    Keywords

    Randomized experiment; Prices; Demand; Prevention; Testing; Subsidies;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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