Transportation Cost and Market Power of Middlemen: A Spatial Analysis of Agricultural Commodity Markets in Developing Countries

dc.creatorSuzuki, Aya
dc.creatorSexton, Richard J.
dc.date2017-04-01T19:18:15Z
dc.date.accessioned2026-07-09T03:27:24Z
dc.descriptionWhile high transportation cost and market power are long-recognized sources of market inefficiency, their analytical relation has not been established in a developing country context. In this paper, we analyze the mechanism by which lower transportation costs increase farm prices and profits by reducing marketing costs and marketing firms' exercise of oligopsony power. We utilize a two-stage game framework to demonstrate use of an endogenous financing mechanism to generate funds to improve transportation infrastructure and derive the optimal rate of taxation to maximize producer welfare.
dc.identifierdoi:10.22004/ag.econ.19329
dc.identifierhttps://ageconsearch.umn.edu/record/19329/files/sp05su03.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/19329
dc.identifier.urihttp://hdl.handle.net/123456789/532859
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/19329
dc.titleTransportation Cost and Market Power of Middlemen: A Spatial Analysis of Agricultural Commodity Markets in Developing Countries
dc.typeText

Archivos