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I see your point. My take is that this is a particularly tricky problem -- along the lines of what Akerlof was talking about. You have incomplete information about quality and it is really not clear (to me at least) how this can get sorted out in the market as it is. And to be clear the CHPs aren't providing information in the conventional sense (witness the lack of an impact where baseline ignorance is high). What they are showing is that good quality can drive out bad -- but the market hadn't done this. I think on the competition point you are exactly right -- but its not the main point here. You also raise good points about the sustainability of CHPs. One of the points i did not raise is that the CHPs earn some decent money through selling the drugs (and other things), but clearly someone has to give them a sustained supply (and the subsidy, if any, for the CHPs is not made clear. The idea of a scanning device and local villagers is quite an interesting one -- clearly the current drug quality enforcement mechanisms aren't working well enough.