Brokers in Ethiopian grain market boost efficiency and economic welfare.
The research report looks at how traders in Ethiopia find each other to exchange goods. It shows that using brokers helps traders save time and money when searching for partners. These search costs make up a big part of overall marketing costs. Brokers help traders connect with new partners, making the grain market more efficient. Traders who are good at searching on their own do it themselves, while others use brokers to help them.