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Willingness to contract versus opportunity to contract: a case study in Kenya's French bean export market
Author(s) -
Rosch Stephanie D.,
Ortega David L.
Publication year - 2019
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12463
Subject(s) - contract farming , opportunity cost , enforcement , willingness to pay , imperfect , business , economics , microeconomics , production (economics) , linguistics , philosophy , political science , law
We characterize systematic differences in willingness and opportunity to contract for farmers in and out of the French bean supply market in Kenya. We find that the factors associated with being a low cost producer do not always align with the factors correlated with opportunity to contract. We also find that farmers in and out of the market differ on average in the premiums they place on buyer reliability, which suggests that imperfect contract enforcement could impact participation in French bean contracting.