Are we all equal when it comes to reducing transaction costs through ICT? Reflection based on French farmers - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
Conference Papers Year : 2023

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.
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Dates and versions

hal-04204654 , version 1 (12-09-2023)

Identifiers

  • HAL Id : hal-04204654 , version 1

Cite

Romane Guillot, Magali Aubert, Anne Mione. Are we all equal when it comes to reducing transaction costs through ICT? Reflection based on French farmers. XVII EAAE Congress: Agri-food systems in a changing world: connecting science and society, European Association of Agricultural Economics (EAAE); INRAE; L'Institut Agro Rennes, Aug 2023, Rennes, France. ⟨hal-04204654⟩
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