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Evaluation of the impact of investments in agricultural market information systems (MIS) on market performance faces several methodological challenges. These include: (a) defining the dimensions of market performance to measure (which is a function of whom the MIS is designed to serve) and identifying reliable indicators of performance dimensions; (b) identifying the pathways through which improved market information affects these dimensions of performance; (c) establishing a reliable baseline against which to measure improved performance; (d) distinguishing between investments in MIS and general improvements in information availability; (e) assessing the contribution of complementary investments and policy changes that frequently accompany the creation of MIS; (f) establishing a credible counterfactual concerning the market situation that would have prevailed in the absence of the MIS; and (g) interpreting the validity of stakeholders’ statements and governments’ revealed preferences, regarding the utility of MIS. Many of these challenges arise because improved market information can affect the welfare of market actors through improved market polices and increased competition, even if these actors do not have direct access to that information. This article discusses these challenges and identifies approaches that may be useful in developing a ‘‘convergence of evidence’’, concerning whether investment in a given MIS is socially worthwhile.

Challenges in measuring the impact of Market Information Systems