Relational frictions along the supply chain: evidence from Senegalese traders
Search and trust frictions have historically made it hard for small firms in lower income countries to buy inputs from foreign markets.
Abstract
The growth in smartphone ownership and social media usage has the potential to alleviate these barriers. Informed by a dynamic model of relational contracting, the authors run a field experiment leveraging these technological tools to provide exogenous variation in search frictions and trust frictions (adverse selection and moral hazard) in a large international import market.
This paper is part of the Private Enterprise Development in Low-Income Countries (PEDL) programme.
Citation
Wiles E and Houeix D.’Relational frictions along the supply chain: evidence from Senegalese traders’ PEDL Working Paper, 2025
Links
Relational frictions along the supply chain: evidence from Senegalese traders