IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Relevance of a Rules-based Maize Marketing Policy: An Experimental Case Study of Zambia

  • Klaus Abbink
  • Thomas Jayne
  • Lars Moller

Strategic interaction between public and private actors is increasingly recognised as an important determinant of agricultural market performance in Africa and elsewhere. Trust and consultation tends to positively affect private activity while uncertainty of government behaviour impedes it. This paper reports on a laboratory experiment based on a stylised model of the Zambian maize market. The experiment facilitates a comparison between discretionary interventionism and a rules-based policy in which the government pre-commits itself to a future course of action. A simple precommitment rule can, in theory, overcome the prevailing strategic dilemma by encouraging private sector participation. Although this result is also borne out in the economic experiment, the improvement in private sector activity is surprisingly small and not statistically significant due to irrationally cautious choices by experimental governments. Encouragingly, a rules-based policy promotes a much more stable market outcome thereby substantially reducing the risk of severe food shortages. These results underscore the importance of predictable and transparent rules for the state's involvement in agricultural markets.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.tandfonline.com/doi/abs/10.1080/00220381003599378
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 47 (2011)
Issue (Month): 2 ()
Pages: 207-230

as
in new window

Handle: RePEc:taf:jdevst:v:47:y:2011:i:2:p:207-230
Contact details of provider: Web page: http://www.tandfonline.com/FJDS20

Order Information: Web: http://www.tandfonline.com/pricing/journal/FJDS20

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Offerman, T.J.S. & Potters, J.J.M. & Sonnemans, J., 2002. "Imitation and belief learning in an oligopoly experiment," Other publications TiSEM a6a771c5-31ba-4193-8f76-a, Tilburg University, School of Economics and Management.
  2. Tschirley, David L. & Nijhoff, Jan J. & Arlindo, Pedro & Mwiinga, Billy & Weber, Michael T. & Jayne, Thomas S., 2006. "Anticipating and Responding to Drought Emergencies in Southern Africa: Lessons from the 2002-2003 Experience," Food Security International Development Working Papers 54564, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
  4. Nijhoff, Jan J. & Tschirley, David L. & Jayne, Thomas S. & Tembo, Gelson & Arlindo, Pedro & Mwiinga, Billy & Shaffer, James D. & Weber, Michael T. & Donovan, Cynthia & Boughton, Duncan, 2003. "Coordination for Long-Term Food Security by Government, Private Sector and Donors: Issues and Challenges," Food Security International Development Policy Syntheses 11319, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 1999. "Learning in Cournot Oligopoly--An Experiment," Economic Journal, Royal Economic Society, vol. 109(454), pages C80-95, March.
  6. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May.
  7. KLAUS ABBINK & MOLLER, Lars Christian & SARAH O’HARA, 2005. "The Syr Darya River Conflict: An Experimental Case Study," Discussion Papers 2005-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  8. Douglass C. North, 1994. "Institutions and Credible Commitment," Economic History 9412002, EconWPA.
  9. Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999. "Stackelberg beats Cournot: On collusion and efficiency in experimental markets," SFB 373 Discussion Papers 1999,32, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  10. repec:ner:tilbur:urn:nbn:nl:ui:12-91663 is not listed on IDEAS
  11. Dufwenberg, Martin & Gneezy, Uri, 2000. "Measuring Beliefs in an Experimental Lost Wallet Game," Games and Economic Behavior, Elsevier, vol. 30(2), pages 163-182, February.
  12. Ramón López, 2005. "Under-investing in public goods: evidence, causes, and consequences for agricultural development, equity, and the environment," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 211-224, 01.
  13. Güth, W. & Kroger, S. & Maug, E., 2003. "You May Have to Do it Again, Rocky! An Experimental Analysis of Bargaining with Risky Joint Profits," Discussion Paper 2003-117, Tilburg University, Center for Economic Research.
  14. Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 2004. "Two are few and four are many: number effects in experimental oligopolies," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 435-446, April.
  15. Jayne, T.S. & Zulu, Ballard & Nijhoff, J.J., 2006. "Stabilizing food markets in eastern and southern Africa," Food Policy, Elsevier, vol. 31(4), pages 328-341, August.
  16. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 265-277, June.
  17. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
  18. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
  19. Haile, Daniel & Sadrieh, Karim & Verbon, Harrie, 2006. "Cross-racial Envy and Underinvestment in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  20. Deininger, Klaus & Olinto, Pedro, 2000. "Why liberalization alone has not improved agricultural productivity in Zambia : the role of asset ownership and working capital constraints," Policy Research Working Paper Series 2302, The World Bank.
  21. William A. Masters & Paul V. Preckel, 1997. "A Spatial Analysis of Maize Marketing Policy Reforms in Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 514-523.
  22. repec:dgr:kubcen:2003117 is not listed on IDEAS
  23. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2002. "Reforming agricultural markets in Africa," Food policy statements 38, International Food Policy Research Institute (IFPRI).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:47:y:2011:i:2:p:207-230. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.