The prices of development. An ethnographic account of a randomized pricing experiment in East Africa

This article, based on ethnographic research, explores the material conditions of price realization, in the context of a poverty-reduction intervention implemented in rural areas of an East African country. It describes a pricing experiment conducted by development economists on people living in extreme poverty, with real money. Using pricing as an analytic prism, I discuss the politics of a market-based poverty-alleviation project. The goal of the experiment was to identify a price that ultra-poor, off-grid consumers would be willing to pay to acquire a solar light. It consisted of testing different prices simultaneously and led to a situation in which participants within the same village were offered to buy the same object at a randomized price. The paper details the operations through which prices were turned into experimental objects and analyses the consequences of the particular way in which prices were materialized. As a result of the experimental pricing process, prices were carefully detached from the solar lights for sale, and carefully attached to randomly selected people. I show that beyond testing the villagers' ability to pay a given price, the experiment aims at testing their ability and stimulating their desire to behave as payers in general.

Automated summary

This article, based on ethnographic research, explores the material conditions of price realization in a poverty-reduction intervention in rural areas. Using a pricing experiment, the study examines the willingness of extremely poor individuals to pay for solar lights and analyzes the consequences of materializing prices.