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Sorting: The Function of Tea Middlemen in Taiwan during the Japanese Colonial Era

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  • Hui-wen Koo
  • Pei-yu Lo

Abstract

In a case study of Taiwan's tea industry during the Japanese colonial period, we identify an important function of middlemen: sorting. The transaction cost saved by the intermediary due to sorting is shown to be empirically significant. We also study other services provided by tea middlemen, including financing and transportation. These are shown to be by-products of an intermediary's job, rather than his essential contribution to trading.

Suggested Citation

  • Hui-wen Koo & Pei-yu Lo, 2004. "Sorting: The Function of Tea Middlemen in Taiwan during the Japanese Colonial Era," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 607-626, December.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200412)160:4_607:stfotm_2.0.tx_2-w
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    Citations

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    Cited by:

    1. Aleix Calveras & Francina Orfila, 2014. "Intermediaries and Quality Uncertainty: Evidence from the Hotel Industry," Tourism Economics, , vol. 20(4), pages 727-756, August.
    2. De Fraja, Gianni & Sákovics, József, 2012. "Exclusive nightclubs and lonely hearts columns: Non-monotone participation in optional intermediation," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 618-632.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East

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