Special Lectures on Middlemen and Vertical Supply Chains


We are pleased to have Professor Dilip Mookherjee (Boston University) deliver a series of 3 lectures on "Middlemen and Vertical Supply Chains." The lectures will cover issues concerning IO, trade, development, and policy interventions and are organized by the Department of Economics.

Please register your interest here.  Please direct your enquiries to econ@ust.hk 

The topic, time, and venue for each lecture are as follows:

LECTURE 1 (March 22): Vertical Relations in Supply Chains. Pass-through and Double Marginalization of Rents, Theory and Applications to IO and Development.


·         N.Melumad, D. Mookherjee and S. Reichelstein, "Hierarchical Decentralization of Incentive Contracts," Rand Journal of Economics, 1995.  https://www.jstor.org/stable/2556011

·         S.Villas-Boas, "Vertical Relationships between Manufacturers and Retailers: Inference with Limited Data", Review of Economic Studies, 2007.   https://www.jstor.org/stable/4626153

·         J.Mortimer, "Vertical Contracts in the Video Rental Industry," Review of Economic Studies, 2008. https://www2.bc.edu/julie-mortimer-2/06jmp1201.pdf

·         D. Atkin and D. Donaldson, "Who's Getting Globalized? The Size and Implications of Intra-National Trade Costs," 2015, working paper. Department of Economics, MIT. https://www.theigc.org/wp-content/uploads/2014/10/Atkin-Donaldson-2012-Working-Paper.pdf

·         S.Emran, D. Mookherjee, F. Shilpi and H. Uddin, "Credit Rationing and Pass Through in Supply Chains: Theory and Evidence from Bangladesh," 2017 working paper, Department of Economics, Boston University http://people.bu.edu/dilipm/wkpap/EffectsSO_June6_2017_Combo.pdf

LECTURE 2 (March 29): Globalization, Middlemen and Inequality. Theoretical models of impacts of trade liberalization and direct foreign investment on middlemen margins and pass-through.


·         P. Antras and A. Costinot, "Intermediated Trade," Quarterly Journal of Economics, 2011.  https://economics.mit.edu/files/7039

·         P. Bardhan, D. Mookherjee and M. Tsumagari, "Middlemen Margins and Globalization," American Economic Journal: Microeconomics, 2013.  https://pdfs.semanticscholar.org/6179/01c1bedff17c837d736287dcdadb2d44852f.pdf

·         D. Mookherjee, A. Motta and M. Tsumagari, "Bypassing Intermediaries via Vertical Integration: A Transaction-Cost Based Theory," working paper, Department of Economics, Boston University. http://people.bu.edu/dilipm/wkpap/insidercollMarch2017v8.pdf

LECTURE 3 (April 11): Agricultural Marketing Policy Interventions in Developing Countries. Impacts of randomized and natural policy experiments in Africa, India and Vietnam.


·         L. Casaburi, R. Glennerster and T. Suri “Rural Roads and Intermediated Trade: Regression Discontinuity Evidence from Sierra Leone” Working Paper 2013. https://www.econ.uzh.ch/dam/jcr:0224ea0a-1080-4a83-940a-5b90c95f2f06/casaburi_glennerster_suri_roads.pdf

·         L. Casaburi and T. Reed, "Competition in Agricultural Markets: An Experimental Approach," working paper, 2017    https://www.econ.uzh.ch/dam/jcr:3101edac-5e7b-4e8f-853f-8ded6df1b419/casaburi_reed_cocoa_201710.pdf

·         M. Fafchamps and B. Minten, "Impact of SMS-Based Agricultural Information on Indian Farmers",  World Bank Economic Review, 26(3): 383-414, 2012  http://web.stanford.edu/~fafchamp/rml.pdf  

·         S. Mitra, P. Maitra, D. Mookherjee and S. Visaria, "Asymmetric Information and Middlemen Margins: An Experiment with Indian Potato Farmers," forthcoming Review of Economics and Statistics, 2018. http://people.bu.edu/dilipm/publications/MMTV_18537_Paper.pdf

·         C. Saenger, M. Torero and M. Quaim, "Impact of Third-Party Enforcement of Contracts in Agricultural Markets: A Field Experiment in Vietnam," American Journal of Agricultural Economics, 2014.   https://academic.oup.com/ajae/article/96/4/1220/57905

Academic Seminar

Prof Mookherjee will also deliver an IEMS Academic Seminar on April 12 about voting and governance. http://iems.ust.hk/voting

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