Exerting Market Power: Competition Among Agricultural Traders in Kenya

This research note describes experimental evidence from Kenya on intermediary market structure

• From: Foreign, Commonwealth & Development Office
• Published: 1 July 2020

• Country: Kenya
• Document Type: Research Paper
• Theme: Economic Growth
• Authors: Bergquist, Falcao, L, Dinerstein, M

Abstract

This research note describes experimental evidence from Kenya on intermediary market structure. We find that traders act consistently with joint profit maximization. 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 81% of total surplus.

This work is part of the Private Enterprise Development in Low Income Countries (PEDL) programme

Citation

Bergquist Falcao, L., and Dinerstein, M. “Exerting Market Power: Competition Among Agricultural Traders in Kenya” PEDL Research Note

Link

Exerting Market Power: Competition Among Agricultural Traders in Kenya

Published 1 July 2020