Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200498
Authors: 
Dillon, Brian
De Weerdt, Joachim
O'Donoghue, Ted
Year of Publication: 
2017
Series/Report no.: 
LICOS Discussion Paper No. 396
Abstract: 
Despite average per-capita consumption of roughly $1 per day, many Tanzanian households do not take advantage of bulk discounts for staple goods. Using transaction diaries covering nearly 57,000 purchases by 1,499 households over two weeks, we find that through bulk purchasing the average household could spend 8.9% less on observed quantities (or consume 15.6% more at observed expenditure). We investigate several explanations for the observed purchasing patterns, and find evidence consistent with inattention, worries about over-consumption, avoidance of social taxation, and coordination problems. Contrary to prior work, we find little evidence that liquidity constraints prevent poor households from bulk purchasing.
Subjects: 
bulk discounts
liquidity constraints
inattention
social taxes
coordination costs
self-control problems
consumer behavior
JEL: 
O12
D03
D12
Document Type: 
Working Paper

Files in This Item:
File
Size
682.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.