000			01324nam a22001577a 4500
999			_c517625 _d517625
008			210722b ||||| |||| 00| 0 eng d
100			_aBergquist, Lauren Falcao and Dinerstein, Michael _927365
245			_aCompetition and entry in agricultural markets: Experimental evidence from Kenya
260			_aThe American Economic Review
300			_a110(12), Dec, 2020: p.3705-3747
520			_aAfrican 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. – Reproduced
650			_aEconomic development: Agriculture; Natural resources; Energy; Environment; Prices _927366
773			_aThe American Economic Review
906			_aAGRICULTURAL DEVELOPMENT
942			_cAR