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Asymmetric Information and Food Safety: Maize in Kenya

Author

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  • Hoffmann, Vivian
  • Mutiga, Samuel
  • Harvey, Jagger
  • Nelson, Rebecca
  • Milgroom, Michael

Abstract

When quality is not observable by prospective buyers, theory predicts that the quality of marketed goods will suffer, and the volume of trade will be depressed. Using data from more than 2,000 maize samples collected in four Kenyan provinces, we show that the presence of aflatoxin, an invisible and dangerous fungal contaminant, is not reflected in maize prices but does affect how maize is used. This apparent market failure reduces the quality of maize available on the market. In addition, we show that self-produced maize is a normal good.

Suggested Citation

  • Hoffmann, Vivian & Mutiga, Samuel & Harvey, Jagger & Nelson, Rebecca & Milgroom, Michael, 2013. "Asymmetric Information and Food Safety: Maize in Kenya," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151288, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:151288
    DOI: 10.22004/ag.econ.151288
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    References listed on IDEAS

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    Cited by:

    1. Ma, Xingliang & Spielman, David J. & Nazli, Hina & Zambrano, Patricia & Zaidi, Fatima & Kouser, Shahzad, 2014. "Information efficiency in a lemons market: Evidence from Bt cotton seed market in Pakistan," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 175278, Agricultural and Applied Economics Association.
    2. Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2015. "Does quality affect maize prices in sub-Saharan Africa? Evidence from Benin," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205503, Agricultural and Applied Economics Association.

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    Keywords

    Crop Production/Industries; Food Consumption/Nutrition/Food Safety;

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