Market segmentation boosts innovation, raises prices, and reduces inequality in agriculture.
In low income countries, farmers need to innovate to improve their livelihoods. Market structures where farmers sell their products affect their choices to innovate. Prices and production levels in rural areas are linked, creating market segmentation. Farmers close to formal markets perform better in adopting new agricultural practices. This leads to higher prices and reduces inequality, showing how market structures impact innovation adoption in developing countries.