Marketing Externalities and Market Development

The authors use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed cost...

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Main Authors:	Emran, M. Shahe, Shilpi. Forhad
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	MARKETING HOUSEHOLD EXPENDITURE SURVEYS FIXED COSTS FARMERS MARKET LIBERALIZATION PRICING CONSUMER EXPENDITURES ADVERSE SELECTION AGGREGATE SUPPLY AGRICULTURAL PRODUCTION AGRICULTURE COMMODITIES CONSUMER PRICES CONTESTABILITY DECISION MAKING DEMAND CURVE DEREGULATION DISECONOMIES DISECONOMIES OF SCALE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FUNCTIONS ECONOMIC GEOGRAPHY ECONOMICS ECONOMIES OF SCALE ELASTICITIES EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXTERNALITIES EXTERNALITY FARMS FUNCTIONAL FORMS GROWTH THEORY HUMAN CAPITAL INCENTIVE PROBLEMS INCOME INCREASING RETURNS INPUT USE LABOR MARKET MARGINAL BENEFITS MARGINAL COSTS MARGINAL REVENUE MARKET ECONOMY MARKET EQUILIBRIUM MARKETING COOPERATIVES OPTIMIZATION POLICY RESEARCH POSITIVE EXTERNALITIES POVERTY ALLEVIATION PRICE TAKERS PRODUCER PRICES PRODUCERS PRODUCTIVITY SALES SCALE ECONOMIES SECURITIES SOCIAL CAPITAL SUPPLY CURVE SUPPLY CURVES SUPPLY FUNCTIONS SURPLUS TECHNOLOGY ADOPTION TOTAL SALES TRANSACTION COSTS URBAN CENTERS
Online Access:	http://documents.worldbank.org/curated/en/2002/05/1783730/marketing-externalities-market-development http://hdl.handle.net/10986/14800

id	okr-10986-14800
recordtype	oai_dc
spelling	okr-10986-148002021-04-23T14:03:20Z Marketing Externalities and Market Development Emran, M. Shahe Shilpi. Forhad MARKETING HOUSEHOLD EXPENDITURE SURVEYS FIXED COSTS FARMERS MARKET LIBERALIZATION PRICING CONSUMER EXPENDITURES ADVERSE SELECTION AGGREGATE SUPPLY AGRICULTURAL PRODUCTION AGRICULTURE COMMODITIES CONSUMER PRICES CONTESTABILITY DECISION MAKING DEMAND CURVE DEREGULATION DISECONOMIES DISECONOMIES OF SCALE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FUNCTIONS ECONOMIC GEOGRAPHY ECONOMICS ECONOMIES OF SCALE ELASTICITIES EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXTERNALITIES EXTERNALITY FARMS FIXED COSTS FUNCTIONAL FORMS GROWTH THEORY HUMAN CAPITAL INCENTIVE PROBLEMS INCOME INCREASING RETURNS INPUT USE LABOR MARKET MARGINAL BENEFITS MARGINAL COSTS MARGINAL REVENUE MARKET ECONOMY MARKET EQUILIBRIUM MARKET LIBERALIZATION MARKETING MARKETING COOPERATIVES OPTIMIZATION POLICY RESEARCH POSITIVE EXTERNALITIES POVERTY ALLEVIATION PRICE TAKERS PRODUCER PRICES PRODUCERS PRODUCTIVITY SALES SCALE ECONOMIES SECURITIES SOCIAL CAPITAL SUPPLY CURVE SUPPLY CURVES SUPPLY FUNCTIONS SURPLUS TECHNOLOGY ADOPTION TOTAL SALES TRANSACTION COSTS URBAN CENTERS The authors use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly nonlinear own and cross commodity externality effects in the sale of farm households. The vegetable markets in villages with low marketable surplus seem to be trapped in segmented local market equilibrium. The analysis points to the coordination failure in farm sale decisions as a plausible explanation for the lack of development of rural markets even after market liberalization policies are implemented. 2013-08-05T18:03:42Z 2013-08-05T18:03:42Z 2002-05 http://documents.worldbank.org/curated/en/2002/05/1783730/marketing-externalities-market-development http://hdl.handle.net/10986/14800 English en_US Policy Research Working Paper;No.2839 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	MARKETING HOUSEHOLD EXPENDITURE SURVEYS FIXED COSTS FARMERS MARKET LIBERALIZATION PRICING CONSUMER EXPENDITURES ADVERSE SELECTION AGGREGATE SUPPLY AGRICULTURAL PRODUCTION AGRICULTURE COMMODITIES CONSUMER PRICES CONTESTABILITY DECISION MAKING DEMAND CURVE DEREGULATION DISECONOMIES DISECONOMIES OF SCALE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FUNCTIONS ECONOMIC GEOGRAPHY ECONOMICS ECONOMIES OF SCALE ELASTICITIES EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXTERNALITIES EXTERNALITY FARMS FIXED COSTS FUNCTIONAL FORMS GROWTH THEORY HUMAN CAPITAL INCENTIVE PROBLEMS INCOME INCREASING RETURNS INPUT USE LABOR MARKET MARGINAL BENEFITS MARGINAL COSTS MARGINAL REVENUE MARKET ECONOMY MARKET EQUILIBRIUM MARKET LIBERALIZATION MARKETING MARKETING COOPERATIVES OPTIMIZATION POLICY RESEARCH POSITIVE EXTERNALITIES POVERTY ALLEVIATION PRICE TAKERS PRODUCER PRICES PRODUCERS PRODUCTIVITY SALES SCALE ECONOMIES SECURITIES SOCIAL CAPITAL SUPPLY CURVE SUPPLY CURVES SUPPLY FUNCTIONS SURPLUS TECHNOLOGY ADOPTION TOTAL SALES TRANSACTION COSTS URBAN CENTERS
spellingShingle	MARKETING HOUSEHOLD EXPENDITURE SURVEYS FIXED COSTS FARMERS MARKET LIBERALIZATION PRICING CONSUMER EXPENDITURES ADVERSE SELECTION AGGREGATE SUPPLY AGRICULTURAL PRODUCTION AGRICULTURE COMMODITIES CONSUMER PRICES CONTESTABILITY DECISION MAKING DEMAND CURVE DEREGULATION DISECONOMIES DISECONOMIES OF SCALE ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FUNCTIONS ECONOMIC GEOGRAPHY ECONOMICS ECONOMIES OF SCALE ELASTICITIES EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EXTERNALITIES EXTERNALITY FARMS FIXED COSTS FUNCTIONAL FORMS GROWTH THEORY HUMAN CAPITAL INCENTIVE PROBLEMS INCOME INCREASING RETURNS INPUT USE LABOR MARKET MARGINAL BENEFITS MARGINAL COSTS MARGINAL REVENUE MARKET ECONOMY MARKET EQUILIBRIUM MARKET LIBERALIZATION MARKETING MARKETING COOPERATIVES OPTIMIZATION POLICY RESEARCH POSITIVE EXTERNALITIES POVERTY ALLEVIATION PRICE TAKERS PRODUCER PRICES PRODUCERS PRODUCTIVITY SALES SCALE ECONOMIES SECURITIES SOCIAL CAPITAL SUPPLY CURVE SUPPLY CURVES SUPPLY FUNCTIONS SURPLUS TECHNOLOGY ADOPTION TOTAL SALES TRANSACTION COSTS URBAN CENTERS Emran, M. Shahe Shilpi. Forhad Marketing Externalities and Market Development
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No.2839
description	The authors use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly nonlinear own and cross commodity externality effects in the sale of farm households. The vegetable markets in villages with low marketable surplus seem to be trapped in segmented local market equilibrium. The analysis points to the coordination failure in farm sale decisions as a plausible explanation for the lack of development of rural markets even after market liberalization policies are implemented.
format	Publications & Research :: Policy Research Working Paper
author	Emran, M. Shahe Shilpi. Forhad
author_facet	Emran, M. Shahe Shilpi. Forhad
author_sort	Emran, M. Shahe
title	Marketing Externalities and Market Development
title_short	Marketing Externalities and Market Development
title_full	Marketing Externalities and Market Development
title_fullStr	Marketing Externalities and Market Development
title_full_unstemmed	Marketing Externalities and Market Development
title_sort	marketing externalities and market development
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://documents.worldbank.org/curated/en/2002/05/1783730/marketing-externalities-market-development http://hdl.handle.net/10986/14800
_version_	1764429978689077248

Marketing Externalities and Market Development

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