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Adverse Selection In Developing Country Factor Markets: The Case Of Fertilizers In Cambodia

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  • Schamel, Guenter
  • Hongen, Friederike

Abstract

We analyze the presence and potential impact of low quality fertilizers, inadequate access to credit and market information on fertilizer market participation and application rates. We explain in theory and show empirically that farmers chose to abstain from the fertilizer market altogether or decrease their application rates below recommended levels because bad quality deters all buyers not willing to pay the market price for the average quality fertilizer available.

Suggested Citation

  • Schamel, Guenter & Hongen, Friederike, 2003. "Adverse Selection In Developing Country Factor Markets: The Case Of Fertilizers In Cambodia," 2003 Annual meeting, July 27-30, Montreal, Canada 21996, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:21996
    DOI: 10.22004/ag.econ.21996
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    File URL: https://ageconsearch.umn.edu/record/21996/files/sp03sc03.pdf
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    Keywords

    Crop Production/Industries;

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