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Pricing of Private Education in Urban India: Demand, Use and Impact
Last registered on July 07, 2015

Pre-Trial

Trial Information
General Information
Title
Pricing of Private Education in Urban India: Demand, Use and Impact
RCT ID
AEARCTR-0000652
Initial registration date
July 07, 2015
Last updated
July 07, 2015 4:08 PM EDT
Location(s)
Region
Primary Investigator
Affiliation
Cornell University
Other Primary Investigator(s)
PI Affiliation
Cornell University
Additional Trial Information
Status
On going
Start date
2014-03-01
End date
2015-11-30
Secondary IDs
Abstract
There is a large market for education services for children in the developing world, with many services being provided by private education service providers. Yet little is known about how prices influence demand and utilization of these services. This study explores this issue by examining demand for tutoring services among middle school children in India. Through a two-part pricing design, we investigate how prices influence the number and composition of those willing to take up the services, whether prices can induce more frequent attendance through a psychological effect, and whether treatment effects are heterogeneous by willingness to pay. In addition, given the gender differences prevalent in educational attainment in India, particularly among older children, we explore differential effects that pricing policy can have on children based on their age and gender.
External Link(s)
Registration Citation
Citation
Berry, James and Priya Mukherjee. 2015. "Pricing of Private Education in Urban India: Demand, Use and Impact." AEA RCT Registry. July 07. https://doi.org/10.1257/rct.652-1.0.
Former Citation
Berry, James, James Berry and Priya Mukherjee. 2015. "Pricing of Private Education in Urban India: Demand, Use and Impact." AEA RCT Registry. July 07. https://www.socialscienceregistry.org/trials/652/history/4639.
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Experimental Details
Interventions
Intervention(s)
Households are approached and randomly offered tuition services for one of 4 monthly prices: Rs. 250/200 (the posted price) ; Rs 150 ; Rs. 75 ; Rs. 0. Households receive a voucher corresponding to their price, effective between April 2014 and March 2015. Conditional on attendance in August 2014, a second price offer (equal to or lower than the first price) is made, effective untill March 2015.

Intervention Start Date
2014-04-01
Intervention End Date
2015-04-01
Primary Outcomes
Primary Outcomes (end points)
Children are tracked in the classes for 10 months. The key outcomes of interest are takeup (enrollment), attendance in the classes, and child test scores.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
This research consists of a field experiment in the market for group-based, after-school tutoring services in India.

The sample for this study consists of approximately 5400 children in 4400 households in in the neighborhoods of Pratham’s 21 tuition centers.

Households are offered tutoring services at prices ranging from 0 to 250 rupees per month. We implement a two-part pricing design similar to those in the health literature (Cohen and Dupas, 2010; Ashraf, Berry and Shapiro, 2010). Households are first offered tutoring services for their children at randomly assigned prices (the “offer price”). Then, if a household accepts that price, the household receives a randomly assigned discount of up to the amount of the offer price (resulting in a lower price paid, the “second price”). This way, the selection effect of prices can be isolated by examining the composition (and behavior) of households that purchase the services at different offer prices conditional on the second price. The psychological effect can be isolated by examining the behavior of households that have paid different prices, conditional on the offer price.
Experimental Design Details
Not available
Randomization Method
First-price randomization done on computer for existing households, and using a draw from a bag of scratch cards for new households. Second-price randomization done on computer.
Randomization Unit
Individual (child) level
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
Not applicable
Sample size: planned number of observations
5400
Sample size (or number of clusters) by treatment arms
First price offer
Rs. 0 - 865 ; Rs. 75 - 1015 ; Rs. 150 - 1427 ; Rs. 200/250 - 2327

Second price offer
Rs. 0 - 942 ; Rs. 75 - 403 ; Rs. 150 - 194 ; Rs. 200/250 - 82
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IFMR Human Subjects Committee
IRB Approval Date
2014-03-11
IRB Approval Number
IRB00007107; FWA00014616; IORG0005894
IRB Name
Cornell University Institutional Review Board - Human Participants (Office of Research Integrity and Assurance)
IRB Approval Date
2013-07-29
IRB Approval Number
1307004019