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Title: Mirage at the Bottom of the Pyramid
Authors: Karnani, Aneel
Keywords: Poverty; Bottom of the pyramid; Selling to the poor; social responsibility
Issue Date: 1-Aug-2006
Series/Report no.: 835
Abstract: Poor people -- at the bottom of the pyramid (BOP) -- represent a very attractive market opportunity. The ‘BOP proposition’ argues that selling to the poor can simultaneously be profitable and help eradicate poverty. This is at best a harmless illusion and potentially a dangerous delusion. This paper shows that the BOP argument is riddled with fallacies, and proposes an alternative perspective on how the private sector can help alleviate poverty. Rather than focusing on the poor as consumers, we need to view the poor as producers. The only way to alleviate poverty is to raise the real income of the poor.
URI: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp
835.pdf
Other Identifiers: RePEc:wdi:papers:2006-835
Appears in Collections:William Davidson Institute (WDI) - Working Papers
Ross School of Business

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