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Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia
European Review of Agricultural Economics ( IF 3.4 ) Pub Date : 2021-03-15 , DOI: 10.1093/erae/jbab018
Banawe Plambou Anissa 1 , Gashaw Abate 2 , Tanguy Bernard 3 , Erwin Bulte 1
Affiliation  

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.

中文翻译:

当地小麦市场是“柠檬市场”吗?证明埃塞俄比亚个体小麦农民的供应

小农供应的增加和混合削弱了供应高质量产品的动力。我们在埃塞俄比亚引入小麦“分级和认证商店”,并使用拍卖设计来衡量认证的支付意愿 (WTP)。出价与小麦质量呈正相关,认证机会的事前通知提高了小麦质量。这些发现表明,当地小麦市场类似于“柠檬市场”,受到信息不对称的影响。但是,用于分级和认证服务的总 WTP 并不能弥补与运营单个认证商店相关的固定、流动和可变成本的总和。
更新日期:2021-03-15
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