Competition and Entry in Agricultural Markets: Experimental Evidence from Kenya

• 成果类型: Article
• 署名作者: Bergquist, Lauren Falcao; Dinerstein, Michael
• 署名单位: University of Michigan System; University of Michigan; University of Chicago
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20171397
• 发表日期: 2020
• 页码: 3705-3747
• 关键词: price-discrimination; UNITED-STATES; pass-through; integration; INFORMATION; BEHAVIOR; margins

摘要

African agricultural markets are characterized by low farmer revenues and high consumer food prices. Many have worried that this wedge is partially driven by imperfect competition among intermediaries. This paper provides experimental evidence from Kenya on intermediary market structure. Randomized cost shocks and demand subsidies are used to identify a structural model of market competition. Estimates reveal that traders act consistently with joint profit maximization and earn median markups of 39 percent. Exogenously induced firm entry has negligible effects on prices, and low -take-up of subsidized entry offers implies large fixed costs. We estimate that traders capture 82 percent of total surplus.