Using information-sharing systems to address opportunistic behaviour between tomato farmers and brokers in Zambia

June 2018
By Eustensia Munsaka

Abstract

Brokers on the Soweto market in Zambia behave opportunistically (towards farmers who trade on this market) by taking advantage of the existing information asymmetry to obtain a hidden commission from tomato sales. The present study aims to determine the extent to which broker opportunism on this market can be reduced by using information systems. It is found that the use of the information-sharing system contributes to reducing broker opportunism. The results indicate the absence of broker opportunistic behaviour when farmers have access to price information, and indicate the presence of broker opportunistic behaviour when farmers do not have access to price information via the information-sharing system.

Download SA-TIED Working Paper 18