Publication:
Paying More for Less: Why Don’t Households in Tanzania Take Advantage of Bulk Discounts?

creativeworkseries.issn1564-698X
dc.contributor.authorDillon, Brian
dc.contributor.authorDe Weerdt, Joachim
dc.contributor.authorO’Donoghue, Ted
dc.date.accessioned2023-08-29T18:11:14Z
dc.date.available2023-08-29T18:11:14Z
dc.date.issued2020-01
dc.description.abstractDo poor households shop in a way that leaves money on the table? A simple way to maximize consumption, conditional on available cash, is to avoid regularly purchasing small amounts of nonperishable goods when bulk discounts are available at modestly larger quantities. Using two-week transaction diaries covering 48,501 purchases by 1,493 households in Tanzania, this article finds that through bulk purchasing the average household could spend 8.7 percent less without reducing purchasing quantities. Several explanations for this pattern are investigated, and the most likely mechanisms are found to be worries about over-consumption of stocks and avoidance of social taxation. Contrary to prior work, there is little indication that liquidity constraints prevent poorer households in the sample from buying in bulk, possibly because the bulk quantities under examination are not very large.en
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/40288
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40288
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectBULK DISCOUNTS
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectSOCIAL TAXES
dc.subjectSELF-CONTROL PROBLEMS
dc.subjectCONSUMER BEHAVIORS
dc.titlePaying More for Less: Why Don’t Households in Tanzania Take Advantage of Bulk Discounts?en
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/35/1/148/5700480 Journal website (version of record)
okr.crossref.titlePaying More for Less: Why Don’t Households in Tanzania Take Advantage of Bulk Discounts?
okr.date.disclosure2023-08-29
okr.doctypePublications & Research::Journal Article
okr.identifier.doi10.1093/wber/lhz020
okr.identifier.doihttp://dx.doi.org/10.1596/40288
okr.language.supporteden
okr.pagenumber148–179
okr.peerreviewAcademic Peer Review
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryTanzania
okr.topicMacroeconomics and Economic Growth::Consumption
okr.volume35 (1)
relation.isJournalIssueOfPublication5e228d66-d0bc-491f-b8a9-09ab39725513
relation.isJournalIssueOfPublication.latestForDiscovery5e228d66-d0bc-491f-b8a9-09ab39725513
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication3a13adfa-b971-4f6d-9aaa-21ba96efc218
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