New Product Adoption Is the Art of Incentives: The Example of Photoelectric Kits in Africa
In the 1970s, the French government decided to help Africa develop. The lack of lighting had long been identified as an obstacle to development: without lighting, for instance, children could not do their homework at night. Thus the French government decided to subsidize the design and manufacturing of light kits. A small solar panel charged its battery in the day in order to be used at night. The tender was launched, a company that designed robust kits won the contract and the kits were sent to Africa to be distributed. But just a few weeks after the operation was launched, it failed. The kits were not used. Why?