Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia
Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification o...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
European Agricultural and Applied Economics Publications Foundation
2021
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/142528 |
| _version_ | 1855520769459617792 |
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| author | Anissa, Banawe Plambou Abate, Gashaw T. Bernard, Tanguy Bulte, Erwin |
| author_browse | Abate, Gashaw T. Anissa, Banawe Plambou Bernard, Tanguy Bulte, Erwin |
| author_facet | Anissa, Banawe Plambou Abate, Gashaw T. Bernard, Tanguy Bulte, Erwin |
| author_sort | Anissa, Banawe Plambou |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification of the opportunity of certification improves wheat quality. These findings suggest that local wheat markets resemble a ‘market for lemons’, crippled by asymmetric information. However, aggregate WTP for grading and certification services does not re-coup the sum of fixed, flow and variable costs associated with running a single certification shop. |
| format | Journal Article |
| id | CGSpace142528 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | European Agricultural and Applied Economics Publications Foundation |
| publisherStr | European Agricultural and Applied Economics Publications Foundation |
| record_format | dspace |
| spelling | CGSpace1425282025-02-24T06:49:34Z Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia Anissa, Banawe Plambou Abate, Gashaw T. Bernard, Tanguy Bulte, Erwin value chains willingness to pay quality controls farmers lemons certification quality agriculture smallholders value chain governance wheat Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification of the opportunity of certification improves wheat quality. These findings suggest that local wheat markets resemble a ‘market for lemons’, crippled by asymmetric information. However, aggregate WTP for grading and certification services does not re-coup the sum of fixed, flow and variable costs associated with running a single certification shop. 2021-12-01 2024-05-22T12:10:37Z 2024-05-22T12:10:37Z Journal Article https://hdl.handle.net/10568/142528 en https://hdl.handle.net/10568/147618 https://doi.org/10.2499/p15738coll2.134984 https://doi.org/10.1016/j.foodpol.2021.102173 Limited Access European Agricultural and Applied Economics Publications Foundation Anissa, Banawe Plambou; Abate, Gashaw Tadesse; Bernard, Tanguy; and Bulte, Erwin. 2021. Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia. European Review of Agricultural Economics 48(5): 1162-1186. https://doi.org/10.1093/erae/jbab018 |
| spellingShingle | value chains willingness to pay quality controls farmers lemons certification quality agriculture smallholders value chain governance wheat Anissa, Banawe Plambou Abate, Gashaw T. Bernard, Tanguy Bulte, Erwin Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title | Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title_full | Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title_fullStr | Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title_full_unstemmed | Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title_short | Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia |
| title_sort | is the local wheat market a market for lemons certifying the supply of individual wheat farmers in ethiopia |
| topic | value chains willingness to pay quality controls farmers lemons certification quality agriculture smallholders value chain governance wheat |
| url | https://hdl.handle.net/10568/142528 |
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