Title: Assessment of bargaining power, market risk and coordination costs in the Thailand cassava marketing channel

Authors: John K.M. Kuwornu; Shahab E. Saqib

Addresses: School of Environment, Resources and Development, Asian Institute of Technology, Thailand ' Regional and Rural Development Planning, Asian Institute of Technology, Thailand; Economics Faculty, Higher Education Department, Khyber Pakhtunkhwa, Pakistan

Abstract: This paper examined the balance of bargaining power, market risks and coordination costs among producers and wholesalers in the Thailand cassava marketing channel using annual data spanning 1980-2007. The results revealed that cassava producers were exceedingly risk averse and that there was bilateral bargaining power between the producers and wholesalers. The variability in profit for the wholesalers was higher than that of producers. The coordination cost generally showed positive linear trend over the years and this demonstrates the existence of information asymmetry in the marketing channel. The policy recommendations are presented.

Keywords: bargaining power; market risk; coordination cost; cassava; Thailand.

DOI: 10.1504/IJVCM.2017.089378

International Journal of Value Chain Management, 2017 Vol.8 No.4, pp.307 - 324

Received: 22 Feb 2017
Accepted: 25 Mar 2017
Published online: 22 Jan 2018 *

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