Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia

Banawe Plambou Anissa, Gashaw Abate, Tanguy Bernard and Erwin Bulte

Post-Print from HAL

Abstract: Abstract 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.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in European Review of Agricultural Economics, 2021, 48 (5), pp.1162-1186. ⟨10.1093/erae/jbab018⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03564937

DOI: 10.1093/erae/jbab018

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().