Subramanian, A. and Qaim, M. (2011) Interlocked village markets and trader idiosyncrasy in rural india. Journal of Agricultural Economics, 62(3), pp. 690-709. (doi: 10.1111/j.1477-9552.2011.00309.x)
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Abstract
The role of traders and traditional exchange institutions has received little attention in empirical research on rural markets in developing countries. We use detailed data on transactions in a village commodity market in India and identify two observed anomalies: first, the repeal of the law of one price, and second, a trader-idiosyncratic effect, namely that large volumes are sold to a trader who does not offer the best price. Econometric analysis demonstrates that trader idiosyncrasy can largely be explained by reciprocity motives in interlocked village markets. Reciprocity leads to market inefficiencies and can result in unexpected supply responses.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Subramanian, Dr Arjunan |
Authors: | Subramanian, A., and Qaim, M. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Journal of Agricultural Economics |
ISSN: | 0021-857X |
ISSN (Online): | 1477-9552 |
Published Online: | 06 August 2011 |
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