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Search Cost and Rural Producers' Trading Choice between Middlemen and Consumers in Bangladesh

Shyamal Chowdhury ()

Journal of Institutional and Theoretical Economics (JITE), 2004, vol. 160, issue 3, 522-541

Abstract: This paper assesses the impact of search cost - as proxied by the cost of access to telephones - on small-scale producers' choice between trading with middlemen and trading directly with consumers. The empirical findings suggest that search cost plays a significant role in this choice and that a reduction in search cost increases the likelihood of trading with consumers. This result has important implications related to the provision of public telephones in rural areas of developing countries.

JEL-codes: C35 D13 D83 (search for similar items in EconPapers)
Date: 2004
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