Affiliation:
1. Faculty of Economics and Agribusiness Agricultural University of Tirana and CERGE EI Tirana Albania
2. Faculty of Economy and Agribussiness Agricultural University of Tirana Tirana Albania
3. Faculty of Economy and Agribusiness, Agricultural University of Tirana Albania, Hochschule Rhein‐Waal and CERGE EI. Tirana Albania
Abstract
AbstractAccess to an agricultural market information system (AMIS) is essential to reduce farmers' risk from market speculation related to information asymmetry. However, AMIS's sustainability depends on the users' needs and willingness to pay (WTP) for market information. This paper explores the WTP for market information among market‐oriented farmers, as well as its determinants. Data were collected through a structured survey with 479 farmers. A contingent dichotomous choice dual boundary estimation is used to measure WTP and a logistic regression is used to ascertain the main determinants of the stated WTP. Experienced losses, access to market information, use of non‐virtual means of information, and degree of farm specialization are the main determinants of the WTP. These findings are useful for establishing a feasible AMIS, and designing its services according to the characteristics, needs, capacities and preferences of the identified potential users.