Search Costs, Intermediation, and Trade: Experimental Evidence from Ugandan Agricultural Markets

Lauren F. Bergquist, Craig McIntosh and Meredith Startz

No 33221, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the large-scale experimental rollout of a platform that reduced search and matching frictions in Ugandan agricultural markets by connecting buyers and sellers. Market integration improved substantially: trade increased and price gaps fell. Interpreting the experiment through a trade model, we estimate treatment effects accounting for equilibrium changes that impact control markets. The intervention reduced fixed trade costs by 21% and increased trade flows between treated markets by 6% and across all markets by 1%. Scale economies shaped engagement: few farmers used the platform, but equilibrium price convergence from improved arbitrage by larger traders passed through to farm revenue.

JEL-codes: F10 O10 (search for similar items in EconPapers)
Date: 2024-12
Note: DEV ITI
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