Unveiling the impact of E-commerce on smallholder livestock marketing: Insights on egg price premiums and mechanisms

Aizhi Yu, Jingsheng Cao, Huiling She and Jian Li

Economic Analysis and Policy, 2023, vol. 80, issue C, 1582-1596

Abstract: The rise of e-commerce is essentially transforming the landscape of agri-food marketing. E-commerce platforms offer smallholder farmers unparalleled access to markets for their distinct products. This study investigates this transformative impact by using egg trading data sourced from a prominent Chinese platform. We focus on the empowering dynamics and mechanisms of e-commerce within smallholder livestock marketing, particularly concerning price premiums. Utilizing a hedonic pricing model, we investigate two potential pathways that likely stimulate smallholder livestock sales in the online platforms: the information display mechanism and the reputation incentive mechanism. Our study identifies the smallholder attribute that drive price premiums for eggs. We explain how these mechanisms influence the augmentation of price premiums about the smallholder attribute. First, e-commerce plays a pivotal role in bolstering the perception of consuming value through the information display mechanism. Second, the reputation incentives foster a sense of trust in consuming quality by accumulating empirical evaluation feedback from consumers. Our findings highlight the critical role of advancing e-commerce development in linking markets to smallholder farmers.

Keywords: E-commerce; Smallholder livestock product; Hedonic price method; Information display mechanism; Reputation incentive mechanism (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1582-1596

DOI: 10.1016/j.eap.2023.10.024

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