Willingness to Pay for IUDs among Women in Madagascar – a Comparative Analysis

Nirali M. Chakraborty, Population Services International (PSI)
Justin Rahariniaina, Population Services International (PSI)
Ietje Reerink, Population Services International (PSI)

A study to assess willingness to pay for an IUD among four groups of women was conducted in Madagascar, in order to help determine the appropriate price point and level of subsidy required for continued growth and availability of this underused contraceptive. Women who had received the IUD for a highly subsidized price and likely users of the IUD in two cities were asked about their willingness to pay, using a contingent valuation method. Likely users in the smaller city had a significantly greater median willingness to pay than current users, while in the capital city, the two groups were not different. Demand curves for the four groups of women were significantly different, however the data showed that a high proportion of women would be willing to pay 5000Ar ($2.25) or more, making the promotion of IUDs feasible in the private sector.