Search Costs in Identity-Preserved Agricultural Markets
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Jeffrey J Reimer
Many industries have "match-maker" institutions that help agents make links to one another by reducing search costs. Such institutions are now emerging in niche farm and food markets. In this study I provide an explanation for such institutions with a theoretical model of a niche market channel involving a small producer, retailer, and variety-loving consumer. I focus on the process by which producers are connected to retailers, and show that search costs between producers and retailers can be an important fixed cost of entry. Reduced search costs result in a larger number of matches, and facilitate the growth of niche market channels selling on the basis of producer identity. I examine the role of consumer preferences, retailer bargaining power, and other key features of these markets.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Demand and Pricing in the U.S. Margarine Industry
- Understanding Consumer Interest in Organics: Production Values vs. Purchasing Behavior
- Estimating the Welfare Loss to Consumers When Food Labels Do Not Adequately Inform: An Application to Fair Trade Certification
- The Role of Farmers' Risk aversion for Contract Choice in the US Hog Industry
- Private Labeling and Competition between Retailers
- Consumer Preferences for Detailed versus Summary Formats of Nutrition Information on Grocery Store Shelf Labels
- Further Results on Asymmetry in Farm-Retail Price Transmission under Spatial Monopoly
- Search Costs in Identity-Preserved Agricultural Markets
- Paying for Shelf Space: An Investigation of Merchandising Allowances in the Grocery Industry
- Agricultural Production Clubs: Viability and Welfare Implications
Articles in the same Issue
- Article
- Demand and Pricing in the U.S. Margarine Industry
- Understanding Consumer Interest in Organics: Production Values vs. Purchasing Behavior
- Estimating the Welfare Loss to Consumers When Food Labels Do Not Adequately Inform: An Application to Fair Trade Certification
- The Role of Farmers' Risk aversion for Contract Choice in the US Hog Industry
- Private Labeling and Competition between Retailers
- Consumer Preferences for Detailed versus Summary Formats of Nutrition Information on Grocery Store Shelf Labels
- Further Results on Asymmetry in Farm-Retail Price Transmission under Spatial Monopoly
- Search Costs in Identity-Preserved Agricultural Markets
- Paying for Shelf Space: An Investigation of Merchandising Allowances in the Grocery Industry
- Agricultural Production Clubs: Viability and Welfare Implications
