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- W1601860306 abstract "This article analyzes the impact of Fair Trade contracts between sub-groups of farmers and a Fair Trade organization on the spot market price. We analyze a three level vertical chain gathering perfectly competitive farmers upstream who offer their raw product on a spot market to manufacturers who then sell finished products to a downstream retailer. Absent Fair Trade, the entire raw product is sold on the spot market. When a Fair Trade organization offers a Fair Trade contract to a sub-group of farmers, it gathers a Guaranteed Minimum Price clause and a straight relationship between the sub-group of farmers and the retailer. This article highlights several conditions such that a snowball effect exists, i.e farmers outside of the Fair Trade contract also benefit from a higher spot market price." @default.
- W1601860306 created "2016-06-24" @default.
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- W1601860306 date "2009-03-11" @default.
- W1601860306 modified "2023-09-23" @default.
- W1601860306 title "Fair Trade Contracts for Some, an Insurance for Others" @default.
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