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Adverse Selection Problems in Developing Country Factor Markets: Fertilisers in Cambodia
Abstract   Peer reviewed

Adverse Selection Problems in Developing Country Factor Markets: Fertilisers in Cambodia

Günter Schamel and Friederike Hoengen
Rural Poverty Reduction through Research for Development and Transformation: book of abstracts ; October 5-7, 2004, Humboldt-Universität zu Berlin, pp.36-36
Deutscher Tropentag (Berlin, 05/10/2004 - 07/10/2004)
2004
Handle:
https://hdl.handle.net/10863/33761

Abstract

Tourism, Marketing and Regional Development Law, Economics and Institutions Adverse selection Asymmetric information Product quality
We analyze the presence and potential impact of low quality fertilizers, inadequate access to credit and market information on fertilizer market participation and application rates. We explain in theory and show empirically that farmers chose to abstain from the fertilizer market altogether or decrease their application rates below recommended levels because bad quality deters all buyers not willing to pay the market price for the average quality fertilizer available.

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