The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia
Strategic interaction between public and private actors is increasingly recognised as an important determinant of agricultural market performance in Africa and elsewhere. Trust and consultation tends to positively affect private activity while uncertainty of government behaviour impedes it. This paper reports on a laboratory experiment based on a stylised model of the Zambian maize market. The experiment facilitates a comparison between discretionary interventionism and a rules-based policy in which the government pre-commits itself to a future course of action. A simple precommitment rule can, in theory, overcome the prevailing strategic dilemma by encouraging private sector participation. Although this result is also borne out in the economic experiment, the improvement in private sector activity is surprisingly small and not statistically significant due to irrationally cautious choices by experimental governments. Encouragingly, a rules-based policy promotes a much more stable market outcome thereby substantially reducing the risk of severe food shortages. These results underscore the importance of predictable and transparent rules for the state's involvement in agricultural markets.
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Format: | Journal Article biblioteca |
Language: | EN |
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2011
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Subjects: | Marketing M310, Economic Development: Agriculture, Natural Resources, Energy, Environment, Other Primary Products O130, Formal and Informal Sectors, Shadow Economy, Institutional Arrangements O170, Agricultural Markets and Marketing, Cooperatives, Agribusiness Q130, Agricultural Policy, Food Policy Q180, |
Online Access: | http://hdl.handle.net/10986/5310 |
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dig-okr-1098653102021-04-23T14:02:21Z The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia Abbink, Klaus Jayne, Thomas S. Moller, Lars C. Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 Strategic interaction between public and private actors is increasingly recognised as an important determinant of agricultural market performance in Africa and elsewhere. Trust and consultation tends to positively affect private activity while uncertainty of government behaviour impedes it. This paper reports on a laboratory experiment based on a stylised model of the Zambian maize market. The experiment facilitates a comparison between discretionary interventionism and a rules-based policy in which the government pre-commits itself to a future course of action. A simple precommitment rule can, in theory, overcome the prevailing strategic dilemma by encouraging private sector participation. Although this result is also borne out in the economic experiment, the improvement in private sector activity is surprisingly small and not statistically significant due to irrationally cautious choices by experimental governments. Encouragingly, a rules-based policy promotes a much more stable market outcome thereby substantially reducing the risk of severe food shortages. These results underscore the importance of predictable and transparent rules for the state's involvement in agricultural markets. 2012-03-30T07:32:14Z 2012-03-30T07:32:14Z 2011 Journal Article Journal of Development Studies 00220388 http://hdl.handle.net/10986/5310 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Zambia |
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Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 |
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Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 Abbink, Klaus Jayne, Thomas S. Moller, Lars C. The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
description |
Strategic interaction between public and private actors is increasingly recognised as an important determinant of agricultural market performance in Africa and elsewhere. Trust and consultation tends to positively affect private activity while uncertainty of government behaviour impedes it. This paper reports on a laboratory experiment based on a stylised model of the Zambian maize market. The experiment facilitates a comparison between discretionary interventionism and a rules-based policy in which the government pre-commits itself to a future course of action. A simple precommitment rule can, in theory, overcome the prevailing strategic dilemma by encouraging private sector participation. Although this result is also borne out in the economic experiment, the improvement in private sector activity is surprisingly small and not statistically significant due to irrationally cautious choices by experimental governments. Encouragingly, a rules-based policy promotes a much more stable market outcome thereby substantially reducing the risk of severe food shortages. These results underscore the importance of predictable and transparent rules for the state's involvement in agricultural markets. |
format |
Journal Article |
topic_facet |
Marketing M310 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agricultural Policy Food Policy Q180 |
author |
Abbink, Klaus Jayne, Thomas S. Moller, Lars C. |
author_facet |
Abbink, Klaus Jayne, Thomas S. Moller, Lars C. |
author_sort |
Abbink, Klaus |
title |
The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
title_short |
The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
title_full |
The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
title_fullStr |
The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
title_full_unstemmed |
The Relevance of a Rules-Based Maize Marketing Policy: An Experimental Case Study of Zambia |
title_sort |
relevance of a rules-based maize marketing policy: an experimental case study of zambia |
publishDate |
2011 |
url |
http://hdl.handle.net/10986/5310 |
work_keys_str_mv |
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