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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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| wp835 .pdf | | 127Kb | Adobe PDF | View/Open |
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