2020
DOI: 10.1596/1813-9450-9167
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Paying More for Less: Why Don't Households in Tanzania Take Advantage of Bulk Discounts?

Abstract: Do 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 paper finds that through bulk purchasing the average household could spend 8.7 percent less without reducing purchasing quantities. Several explana… Show more

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