Search Cost and Rural Producers' Trading Choice between Middlemen and Consumers in Bangladesh
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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Volume (Year): 160 (2004)
Issue (Month): 3 (September)
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