Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36013
Authors: 
Chau, Nancy H.
Goto, Hideaki
Kanbur, Ravi
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4406
Abstract: 
In many markets in developing countries, especially in remote areas, middlemen are thought to earn excessive profits. Non-profits come in to counter what is seen as middlemen's market power, and rich country consumers pay a fair-trade premium for products marketed by such non-profits. This paper provides answers to the following five questions. How exactly do middlemen and non-profits divide up the market? How do the price mark up and price pass-through differ between middleman and non-profits? What is the impact of non-profits entry on the wellbeing of the poor? Should the government subsidize the entry of non-profits, or the entry of middlemen? Should wealthy consumers in the North pay a premium for fair trade products, or should they support fair trade non-profits directly?
Subjects: 
Middlemen
non-profits
poverty
market access
JEL: 
F15
I32
L3
Document Type: 
Working Paper

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