Are we all equal when it comes to reducing transaction costs through ICT? Reflection based on French farmers
Abstract
This contribution examines the capacity of digital tools to reduce farmers' transaction costs. The study uses data from a survey of 159 French market gardeners. The propensity score matching method is used to identify the effects induced by the use of digital tools. We distinguish five different uses of Information and Communication Technologies (ICTs) and compare their effects according to the farmer's marketing strategy (direct or indirect sales). The results show that every ICTs use reduces at least one type of transaction cost for indirect sellers. However, for direct sellers, only the uses for price information and farm visibility tools reduce some information and bargaining costs. No digital tool reduces the main cost for direct selling farmers; enforcement costs. This study, therefore, indicates that the reduction of transaction costs by digital technology depends on its use, the farmer’s marketing strategy, and the cost considered.