IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/165933.html
   My bibliography  Save this article

The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker

Author

Listed:
  • Zapata, Samuel D.
  • Carpio, Carlos E.
  • Isengildina-Massa, Olga
  • Lamie, R. David

Abstract

Despite the touted potential of e-commerce to improve agriculture profits, the literature on effectiveness of e-commerce is very limited. This paper assesses the economic impact of an electronic trade platform (i.e., MarketMaker) on agricultural producers. Contingent valuation techniques are employed to estimate the monetary value that producers placed on MarketMaker services. Results indicate that producers are willing to pay $47.02 annually for the services they receive. Registration type, amount of time registered, amount of time devoted to MarketMaker, type of user, number of marketing contacts received, and firm total annual sales have a significant effect on producers’ willingness to pay.

Suggested Citation

  • Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-20.
    • Handle: RePEc:ags:jlaare:165933
    DOI: 10.22004/ag.econ.165933
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/165933/files/JARE_Dec2013__5_Zapata_pp359-378.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.165933?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kenkel, Philip L. & Norris, Patricia E., 1995. "Agricultural Producers' Willingness To Pay For Real-Time Mesoscale Weather Information," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(2), pages 1-17, December.
    2. Carpio, Carlos E. & Wohlgenant, Michael K. & Safley, Charles D., 2008. "Relative Importance of Factors Affecting Customer's Decisions to Buy Pick-Your-Own Versus Preharvested Fruit at North Carolina Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(3), pages 983-997, December.
    3. Henderson, Jason R. & Dooley, Frank J. & Akridge, Jay T. & Carerre, Antonio, 2005. "Adoption of Internet Strategies by Agribusiness Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(4), pages 1-20.
    4. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    5. Joe Kerkvliet, 1997. "A Randomized Response Approach to Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 252-266.
    6. Alan Diener & Bernie O'Brien & Amiram Gafni, 1998. "Health care contingent valuation studies: a review and classification of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 313-326, June.
    7. Samuel D. Zapata & Carlos E. Carpio, 2014. "The theoretical structure of producer willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 613-623, September.
    8. Krupnick, Alan & Alberini, Anna & Cropper, Maureen & Simon, Nathalie & O'Brien, Bernie & Goeree, Ron & Heintzelman, Martin, 2002. "Age, Health and the Willingness to Pay for Mortality Risk Reductions: A Contingent Valuation Survey of Ontario Residents," Journal of Risk and Uncertainty, Springer, vol. 24(2), pages 161-186, March.
    9. Baer, Alexander G. & Brown, Cheryl, 2007. "Adoption of E-Marketing by Direct-Market Farms in the Northeastern United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(2), pages 1-11, July.
    10. Montealegre, Fernando & Thompson, Sarahelen R. & Eales, James S., 2007. "An Empirical Analysis of the Determinants of Success of Food and Agribusiness E-Commerce Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(1), pages 1-21.
    11. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 737-753.
    12. Clifford, William B. & Hoban, Thomas J. & Whitehead, John C., 2001. "Willingness To Pay For Agricultural Research And Extension Programs," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(1), pages 1-11, April.
    13. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    14. Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017, September.
    15. Batte, Marvin T. & Ernst, Stan, 2007. "Net Gains from 'Net Purchases? Farmers’ Preferences for Online and Local Input Purchases," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(1), pages 84-94, April.
    16. Eric Thompson & Mark Berger & Glenn Blomquist & Steven Allen, 2002. "Valuing the Arts: A Contingent Valuation Approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 87-113, May.
    17. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    18. Batte, Marvin T., 2004. "Computer Adoption and Use by Ohio Farmers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-4.
    19. Henderson, Dennis R., 1984. "Electronic Marketing In Principle And Practice," 1984 Annual Meeting, August 5-8, Ithaca, New York 279040, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
    21. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. Dave, 2011. "Do Internet-Based Promotion Efforts Work? Evaluating MarketMaker," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 29(1).
    22. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    23. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
    24. Darren Hudson & Diane Hite, 2003. "Producer Willingness to Pay for Precision Application Technology: Implications for Government and the Technology Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 39-53, March.
    25. Zapata, Samuel D. & Benavides, Holger M. & Carpio, Carlos E. & Willis, David B., 2009. "The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46773, Southern Agricultural Economics Association.
    26. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brenna Ellison & Nicholas D Paulson & Mykel R Taylor & Glynn T Tonsor & Jonathan Coppess & Gary D Schnitkey, 2017. "Evaluation of Educational Offerings Associated with the 2014 Farm Bill," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(4), pages 547-558.
    2. Adil Zia & Musaad Alzahrani, 2022. "Investigating the Effects of E-Marketing Factors for Agricultural Products on the Emergence of Sustainable Consumer Behaviour," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    3. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
    4. Michael Vassalos & Wuyang Hu & Timothy Woods & Jack Schieffer & Carl Dillon, 2016. "Risk Preferences, Transaction Costs, and Choice of Marketing Contracts: Evidence from a Choice Experiment with Fresh Vegetable Producers," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 379-396, July.
    5. Zapata, Samuel D. & Isengildina-Massa, Olga & Carpio, Carlos E. & Lamie, R. David, 2016. "Does E-Commerce Help Farmers’ Markets? Measuring the Impact of MarketMaker," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-18, July.
    6. Zapata, Samuel D. & Carpio, Carlos E., 2014. "Distribution-free Methods for Estimation of Willingness to Pay Models Using Discrete Response Valuation Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170453, Agricultural and Applied Economics Association.
    7. Vassalos, Michael & Li, Yingbo, 2016. "Assessing the Impact of Fresh Vegetable Growers’ Risk Aversion Levels and Risk Preferences on the Probability of Adopting Marketing Contracts: A Bayesian Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-18, February.
    8. Zeng, Yiwu & Jia, Fu & Wan, Li & Guo, Hongdong, 2017. "E-commerce in agri-food sector: a systematic literature review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), February.
    9. Lili Li & Yiwu Zeng & Zi Ye & Hongdong Guo, 2021. "E‐commerce development and urban‐rural income gap: Evidence from Zhejiang Province, China," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 475-494, April.
    10. Lili Li & Linyi Zheng & Zhonggen Zhang & Yixiang Song, 2024. "How to trigger and strengthen the positive impact of the internet on the income of farmers in the region? A case from China," Electronic Commerce Research, Springer, vol. 24(2), pages 1407-1433, June.
    11. Giovanni Pino & Pierluigi Toma & Cristian Rizzo & Pier Paolo Miglietta & Alessandro M. Peluso & Gianluigi Guido, 2017. "Determinants of Farmers’ Intention to Adopt Water Saving Measures: Evidence from Italy," Sustainability, MDPI, vol. 9(1), pages 1-14, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samuel D. Zapata & Carlos E. Carpio, 2014. "The theoretical structure of producer willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 613-623, September.
    2. Zapata, Samuel D. & Carpio, Carlos E., 2014. "Distribution-free Methods for Estimation of Willingness to Pay Models Using Discrete Response Valuation Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170453, Agricultural and Applied Economics Association.
    3. Zapata, Samuel D. & Isengildina-Massa, Olga & Carpio, Carlos E. & Lamie, R. David, 2016. "Does E-Commerce Help Farmers’ Markets? Measuring the Impact of MarketMaker," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-18, July.
    4. Zapata, Samuel D. & Carpio, Carlos E., . "Distribution-Free Methods to Estimate Willingness to Pay Models Using Discrete Response Valuation Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    5. Vossler, Christian A. & Kerkvliet, Joe & Polasky, Stephen & Gainutdinova, Olesya, 2003. "Externally validating contingent valuation: an open-space survey and referendum in Corvallis, Oregon," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 261-277, June.
    6. Tuan, Tran Huu & Navrud, Stale, 2009. "Applying the dissonance-minimising format to value cultural heritage in developing countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-17.
    7. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters, in: Daniel McFadden & Kenneth Train (ed.), Contingent Valuation of Environmental Goods, chapter 2, pages 17-42, Edward Elgar Publishing.
    8. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
    9. Allen Blackman & Francisco Alpízar & Fredrik Carlsson & Marisol Rivera Planter, 2018. "A Contingent Valuation Approach to Estimating Regulatory Costs: Mexico’s Day without Driving Program," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(3), pages 607-641.
    10. Tienhaara, Annika & Ahtiainen, Heini & Pouta, Eija, 2015. "Consumer and citizen roles and motives in the valuation of agricultural genetic resources in Finland," Ecological Economics, Elsevier, vol. 114(C), pages 1-10.
    11. Fadipe, Ademoye Emmanuel Akinboboye & Adigun, A.A. & Animashaun, Jubril Olayinka, 2014. "Assessment of Rural Farming Households WTP for Fertilizers and Agrochemicals in Kwawara State, Nigeria," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 4(2), February.
    12. Agha Akram & Sheila Olmstead, 2011. "The Value of Household Water Service Quality in Lahore, Pakistan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(2), pages 173-198, June.
    13. Sylvia Brandt & Felipe Vásquez & Michael Hanemann, 2008. "Designing Contingent Valuation Scenarios for Environmental Health: The Case of Childhood Asthma," Working Papers 11-2008, Departamento de Economía, Universidad de Concepción.
    14. Leslie Richardson & Lynne Lewis, 2022. "Getting to know you: individual animals, wildlife webcams, and willingness to pay for brown bear preservation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 673-692, March.
    15. David Hoyos & Petr Mariel, 2010. "Contingent Valuation: Past, Present and Future," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(4), pages 329-343.
    16. Kim, Seon-Ae & Gillespie, Jeffrey M. & Paudel, Krishna P., 2008. "Rotational grazing adoption in cattle production under a cost-share agreement: does uncertainty have a role in conservation technology adoption?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-18.
    17. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    18. Paul Mwebaze & Jeff Bennett & Nigel W. Beebe & Gregor J. Devine & Paul Barro, 2018. "Economic Valuation of the Threat Posed by the Establishment of the Asian Tiger Mosquito in Australia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 357-379, October.
    19. Sardana, Kavita, 2019. "Tourists' Willingness to Pay for Restoration of Traditional Agro-forest Ecosystems Providing Biodiversity: Evidence from India," Ecological Economics, Elsevier, vol. 159(C), pages 362-372.
    20. Liljas, Bengt & Blumenschein, Karen, 2000. "On hypothetical bias and calibration in cost-benefit studies," Health Policy, Elsevier, vol. 52(1), pages 53-70, May.

    More about this item

    Keywords

    Financial Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:165933. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.