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Access to Information, Transaction Costs and Marketing Choice of Rural Households between Middlemen and Direct Buyers in Bangladesh

Author

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  • Chowdhury, Shyamal K

    (University of Bonn)

Abstract

This paper assesses the impact of information cost and other transaction costs on rural producers' discrete choice between selling to middlemen and direct buyers, and continuous choice of selling intensity to middlemen and direct buyers. Using transaction costs economics as an analytical framework to decompose the different origins of transaction costs, the paper empirically investigates the impact of transaction costs on farm households' marketing behaviour in the context of Bangladesh. Empirical findings of this paper suggest that access to information in the form of access to telephone and other form of transaction costs play a significant role in producers' marketing behaviour. For information cost, a unit change in distance to telephone increases the probability of choosing direct buyer over middlemen by more than 4 percent and sales to direct buyer by more than 8 percent.

Suggested Citation

  • Chowdhury, Shyamal K, 2002. "Access to Information, Transaction Costs and Marketing Choice of Rural Households between Middlemen and Direct Buyers in Bangladesh," Royal Economic Society Annual Conference 2002 50, Royal Economic Society.
    • Handle: RePEc:ecj:ac2002:50
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    Cited by:

    1. Emily Ouma & John Jagwe & Gideon Aiko Obare & Steffen Abele, 2010. "Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 111-122, March.
    2. Peng Peng & Zhigang Xu, 2022. "Price expectations, risk aversion, and choice of sales methods for large‐scale farmers under incomplete market conditions," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 1012-1031, October.

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