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Fair Trade: A Model To Study The Behavioral Entry Decision For Producers Into The Fair Trade Market As Well As Its Effect On Heterogeneous Producers

Author

Listed:
  • Nechad, Abdelhamid

    (Professor at Abdelmalek Essaadi University and ESCA School of management, Morocco)

  • Essakhi, Adam

    (Phd Student at Abdelmalek Essaadi University, Morocco)

Abstract

In this paper we will try to construct a model to examine the entry decision for producers into Fair Trade market, as well as compare this entry with the normal process, or the heterogenous producers’ model, we will study the discrepancies between the two, including the lack of information at the entry point for Fair trade producers, and try to find an equilibrium under which the Fair Trade model can succeed.

Suggested Citation

  • Nechad, Abdelhamid & Essakhi, Adam, 2021. "Fair Trade: A Model To Study The Behavioral Entry Decision For Producers Into The Fair Trade Market As Well As Its Effect On Heterogeneous Producers," Journal of Economic and Social Development, Clinical Journals Press, vol. 8(01), pages 01-15, March.
    • Handle: RePEc:ris:joeasd:0062
    as

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    References listed on IDEAS

    as
    1. Mark Hayes, 2006. "On the efficiency of fair trade," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 447-468.
    2. Dennis Yanchus & Xavier de Vanssay, 2003. "The Myth of Fair Prices: A Graphical Analysis," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(3), pages 235-240, January.
    3. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2010. "Multiple-Product Firms and Product Switching," American Economic Review, American Economic Association, vol. 100(1), pages 70-97, March.
    4. Paula Bustos, 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms," American Economic Review, American Economic Association, vol. 101(1), pages 304-340, February.
    5. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fair Trade; productivity; costs; profit;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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