Of markets and middlemen: the role of brokers in Ethiopia
Using survey data on traders and brokers in the Ethiopian foodgrain market, this paper reveals that the brokerage institution is critical to market performance in that it enables traders to circumvent the commitment problem of long-distance trade with unknown partners. In the absence of grain standa...
| Autor principal: | |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
1999
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/161317 |
| _version_ | 1855524373454127104 |
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| author | Gabre-Madhin, Eleni Zaude |
| author_browse | Gabre-Madhin, Eleni Zaude |
| author_facet | Gabre-Madhin, Eleni Zaude |
| author_sort | Gabre-Madhin, Eleni Zaude |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Using survey data on traders and brokers in the Ethiopian foodgrain market, this paper reveals that the brokerage institution is critical to market performance in that it enables traders to circumvent the commitment problem of long-distance trade with unknown partners. In the absence of grain standardization, public information, and legal contract enforcement, brokers act as inspectors and guarantors of each transaction. The paper analyzes the sources of commitment failure, the role and functions of brokers and the extent of brokerage use by brokers, and argues that agency relations are not based on ethnicity, depend on effective reputation rather than trust, and are structured in an incentive-compatible manner. |
| format | Artículo preliminar |
| id | CGSpace161317 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 1999 |
| publishDateRange | 1999 |
| publishDateSort | 1999 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1613172025-11-06T06:07:56Z Of markets and middlemen: the role of brokers in Ethiopia Gabre-Madhin, Eleni Zaude trade Using survey data on traders and brokers in the Ethiopian foodgrain market, this paper reveals that the brokerage institution is critical to market performance in that it enables traders to circumvent the commitment problem of long-distance trade with unknown partners. In the absence of grain standardization, public information, and legal contract enforcement, brokers act as inspectors and guarantors of each transaction. The paper analyzes the sources of commitment failure, the role and functions of brokers and the extent of brokerage use by brokers, and argues that agency relations are not based on ethnicity, depend on effective reputation rather than trust, and are structured in an incentive-compatible manner. 1999 2024-11-21T09:54:52Z 2024-11-21T09:54:52Z Working Paper https://hdl.handle.net/10568/161317 en Open Access application/pdf International Food Policy Research Institute Gabre-Madhin, Eleni Zaude. 1999. Of markets and middlemen;the role of brokers in Ethiopia. MTID Discussion Paper 39. https://hdl.handle.net/10568/161317 |
| spellingShingle | trade Gabre-Madhin, Eleni Zaude Of markets and middlemen: the role of brokers in Ethiopia |
| title | Of markets and middlemen: the role of brokers in Ethiopia |
| title_full | Of markets and middlemen: the role of brokers in Ethiopia |
| title_fullStr | Of markets and middlemen: the role of brokers in Ethiopia |
| title_full_unstemmed | Of markets and middlemen: the role of brokers in Ethiopia |
| title_short | Of markets and middlemen: the role of brokers in Ethiopia |
| title_sort | of markets and middlemen the role of brokers in ethiopia |
| topic | trade |
| url | https://hdl.handle.net/10568/161317 |
| work_keys_str_mv | AT gabremadhinelenizaude ofmarketsandmiddlementheroleofbrokersinethiopia |