IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v130y2025ics0306919224001854.html

Signaling quality in informal markets. Evidence from an experimental auction in the Sahel

Author

Listed:
  • Ricker-Gilbert, Jacob
  • Moussa, Bokar
  • Abdoulaye, Tahirou

Abstract

This study estimates the extent to which rural consumers in sub-Saharan Africa value quality signals about their food. We tested this by implementing an incentive-compatible Becker-Degroot Marschak auction among consumers in Niger and Northern Nigeria to estimate their willingness to pay (WTP) for cowpea (blackeyed pea) that was stored and sold in an improved grain storage bag that signaled unobservable quality in the form of insecticide-free grain. The improved bag had two inner layers of high-density plastic that created an airtight seal around the grain stored in it. The seal killed insects through suffocation rather than insecticide. The bag also had a branded label from its manufacturer on its outer layer to help distinguish it from a generic single-layer, woven storage bag. We estimated the size of the price differential (premium) that the average consumer placed on unobservable grain quality, as measured through the WTP premium for grain sold in the improved bag with a label. We also estimated the effect that consumers’ previous awareness of the improved bag had on their valuation of observable and unobservable quality. Our results indicated that on average consumers in Niger were willing to pay a 10% premium for cowpea stored and sold in the improved storage bag compared to cowpea of the same observable quality that was sold in a generic woven bag. The same unobservable quality premium was 17% in Nigeria. The results from this study provide evidence that there may be a latent demand for quality proxied by food safety among limited resource people in sub-Saharan Africa and that improved products with branded labels can potentially provide a quality signal to the market.

Suggested Citation

  • Ricker-Gilbert, Jacob & Moussa, Bokar & Abdoulaye, Tahirou, 2025. "Signaling quality in informal markets. Evidence from an experimental auction in the Sahel," Food Policy, Elsevier, vol. 130(C).
    • Handle: RePEc:eee:jfpoli:v:130:y:2025:i:c:s0306919224001854
    DOI: 10.1016/j.foodpol.2024.102774
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919224001854
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2024.102774?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, May.
    2. Sarah Wairimu Kariuki & Vivian Hoffmann, 2022. "Can information drive demand for safer food? Impact of brand‐specific recommendations and test results on product choice," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 454-467, May.
    3. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    4. Langyintuo, A. S. & Ntoukam, G. & Murdock, L. & Lowenberg-DeBoer, J. & Miller, D. J., 2004. "Consumer preferences for cowpea in Cameroon and Ghana," Agricultural Economics, Blackwell, vol. 30(3), pages 203-213, May.
    5. James Berry & Greg Fischer & Raymond Guiteras, 2020. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1436-1473.
    6. Aker, Jenny C. & Dillon, Brian & Welch, C. Jamilah, 2023. "Demand, supply and long-term adoption: Evidence from a storage technology in West Africa," Journal of Development Economics, Elsevier, vol. 165(C).
    7. Stacy Prieto & Jacob Ricker-Gilbert & Jonathan Bauchet & Moussa Sall, 2021. "Incomplete Information and Product Quality in Rural Markets: Evidence from an Experimental Auction for Maize in Senegal," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1351-1377.
    8. Jonathan Bauchet & Stacy Prieto & Jacob Ricker‐Gilbert, 2021. "Improved Drying and Storage Practices that Reduce Aflatoxins in Stored Maize: Experimental Evidence from Smallholders in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 296-316, January.
    9. Faye, Mbene Dieye & Jooste, Andre & Lowenberg-DeBoer, James & Fulton, Joan R., 2004. "The influence of cowpea characteristics on cowpea prices in Senegal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(4), pages 1-12, December.
    10. Vivian Hoffmann & Christine Moser, 2017. "You get what you pay for: the link between price and food safety in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 449-458, July.
    11. Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2016. "Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin," World Development, Elsevier, vol. 77(C), pages 115-128.
    12. Nindi, Tabitha Charles & Bauchet, Jonathan & Ricker-Gilbert, Jacob, 2023. "Information and the trade-off between food safety and food security in rural markets: Experimental evidence from Malawi," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 170-186.
    13. Didier Kadjo & Jacob Ricker‐Gilbert & Gerald Shively & Tahirou Abdoulaye, 2020. "Food Safety and Adverse Selection in Rural Maize Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 412-438, June.
    14. Hugo Groote & Clare Narrod & Simon C. Kimenju & Charles Bett & Rosemarie P. B. Scott & Marites M. Tiongco & Zachary M. Gitonga, 2016. "Measuring rural consumers’ willingness to pay for quality labels using experimental auctions: the case of aflatoxin-free maize in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 33-45, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peng Gao & Hao Dai & Xinhui Dai, 2026. "Echoes of green: can the development of specialty agriculture improve agro-ecological environments?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 10525-10557, April.
    2. Dieudonne Baributsa & Mahamane Moctar Rabé & Ibrahim B. Baoua, 2025. "Postharvest Management Practices Among Grain Traders in Burkina Faso and Niger," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 17(11), pages 1-1, October.
    3. Ameye, Hannah & Hülsen, Vivien & Glatzel, Katrin & Laar, Amos & Qaim, Matin, 2025. "Urbanizing food environments in Africa: Challenges and opportunities for improving accessibility, affordability, convenience, and desirability of healthy diets," Food Policy, Elsevier, vol. 137(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ricker-Gilbert, Jacob & Moussa, Bokar & Abdoulaye, Tahirou, 2021. "Using Branding to Signal Quality in Informal Markets. Evidence from an Experimental Auction in the Sahel," 2021 Conference, August 17-31, 2021, Virtual 315284, International Association of Agricultural Economists.
    2. Nindi, Tabitha Charles & Bauchet, Jonathan & Ricker-Gilbert, Jacob, 2023. "Information and the trade-off between food safety and food security in rural markets: Experimental evidence from Malawi," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 170-186.
    3. Hoffmann, Vivian & Mutiga, Samuel K. & Harvey, Jagger W. & Nelson, Rebecca J. & Milgroom, Michael G., 2021. "Observability of food safety losses in maize: Evidence from Kenya," Food Policy, Elsevier, vol. 98(C).
    4. Sanou, Awa & Liverpool-Tasie, Lenis Saweda O. & Caputo, Vincenzina & Kerr, John, 2021. "Introducing an aflatoxin-safe labeling program in complex food supply chains: Evidence from a choice experiment in Nigeria," Food Policy, Elsevier, vol. 102(C).
    5. Akinwehinmi, Oluwagbenga & Liesbeth, Colen & Vincenzina, Caputo, 2025. "Effect of Market-Level Risk Information on Consumer Willingness to Pay for Aflatoxin-Safe Food: Evidence from Unregulated Food Markets in Nigeria," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360883, Agricultural and Applied Economics Association.
    6. Do Nascimento Miguel, Jérémy, 2024. "Returns to quality in rural agricultural markets: Evidence from wheat markets in Ethiopia," Journal of Development Economics, Elsevier, vol. 171(C).
    7. Nkoyo Etim Bassey & Arnim Kuhn & Hugo Storm, 2018. "Are maize marketers averse to quality loss in supplies? A case study from Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 649-658, September.
    8. Hoffmann, Vivian & Jones, Kelly, 2021. "Improving food safety on the farm: Experimental evidence from Kenya on incentives and subsidies for technology adoption," World Development, Elsevier, vol. 143(C).
    9. Arias-Granada, Yurani & Bauchet, Jonathan & Ricker-Gilbert, Jacob & Gulati, Kajal, 2025. "Social networks and the demand for credence agricultural technologies," Food Policy, Elsevier, vol. 135(C).
    10. Abate, Gashaw T. & Bernard, Tanguy & Deutschmann, Joshua & Fall, Fatou, 2025. "Do others’ health count for peanuts? Health, market returns, and pro-sociality," IFPRI discussion papers 2346, International Food Policy Research Institute (IFPRI).
    11. Magnan, Nicholas & Hoffmann, Vivian & Opoku, Nelson & Gajate Garrido, Gissele & Kanyam, Daniel Akwasi, 2021. "Information, technology, and market rewards: Incentivizing aflatoxin control in Ghana," Journal of Development Economics, Elsevier, vol. 151(C).
    12. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    13. Didier Kadjo & Jacob Ricker‐Gilbert & Gerald Shively & Tahirou Abdoulaye, 2020. "Food Safety and Adverse Selection in Rural Maize Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 412-438, June.
    14. repec:ags:aaea22:335810 is not listed on IDEAS
    15. Abate, Gashaw T. & Bernard, Tanguy & de Janvry, Alain & Sadoulet, Elisabeth & Trachtman, Carly, 2021. "Introducing quality certification in staple food markets in Sub-Saharan Africa: Four conditions for successful implementation," Food Policy, Elsevier, vol. 105(C).
    16. Hoffmann, Vivian & Jones, Kelly M., 2018. "Improving food safety on the farm: Experimental evidence from Kenya on agricultural incentives and subsidies as public health investments," IFPRI discussion papers 1746, International Food Policy Research Institute (IFPRI).
    17. Cansın Arslan & Daniel Gregg & Meike Wollni, 2024. "Paying more to make less: value degrading in the coffee value chain in eastern Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 96-117, January.
    18. Vivian Hoffmann & Sarah Kariuki & Janneke Pieters & Mark Treurniet, 2023. "Upside risk, consumption value, and market returns to food safety," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 914-939, May.
    19. Tanya E. Stathers & Sarah E. J. Arnold & Corinne J. Rumney & Clare Hopson, 2020. "Measuring the nutritional cost of insect infestation of stored maize and cowpea," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 285-308, April.
    20. Brander, Michael & Abro, Zewdu & Kassie, Menale & Mittmann, Wolfgang & Stiefel, Lukas & Huss, Matthias, 2025. "Small policy changes can accelerate the adoption of improved on-farm storage among smallholder farmers," World Development, Elsevier, vol. 195(C).
    21. Naphtal Habiyaremye & Nadhem Mtimet & Emily A. Ouma & Gideon A. Obare, 2023. "Consumers' willingness to pay for safe and quality milk: Evidence from experimental auctions in Rwanda," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1049-1074, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:130:y:2025:i:c:s0306919224001854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.