The conventional approach is ill-equipped to test for price transmission when endogenously unstable markets do not equilibrate due to systematic arbitrage-frustrating frictions including financial and institutional transaction costs and biophysical constraints. We propose a novel empirical framework using price...
Using variation across the sample in estimated gains in revenue, I show that 63% of the gains from door-to-door sales are lost with decentralized trade through networks. Frictions preventing interactions between farmers from different social groups offer an explanation for the results. Sub-caste ...