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Search Cost and Rural Producers' Trading Choice between Middlemen and Consumers in Bangladesh

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Author Info
Shyamal K. Chowdhury

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Abstract

This paper assesses the impact of search cost - as proxied by the cost of access to telephones - on small-scale producers' choice between trading with middlemen and trading directly with consumers. The empirical findings suggest that search cost plays a significant role in this choice and that a reduction in search cost increases the likelihood of trading with consumers. This result has important implications related to the provision of public telephones in rural areas of developing countries.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 160 (2004)
Issue (Month): 3 (September)
Pages: 522-541
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200409)160:3_522:scarpt_2.0.tx_2-m

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Related research
Keywords:

Find related papers by JEL classification:
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

Cited by:
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  1. Chowdhury, Shyamal & Gulati, Ashok & Gumbira-Sa'id, E., 2005. "High value products, supermarkets and vertical arrangements in Indonesia," MTID discussion papers 83, International Food Policy Research Institute (IFPRI). [Downloadable!]
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