@TechReport{iza:izadps:dp4406, author={Chau, Nancy H. and Goto, Hideaki and Kanbur, Ravi}, title={Middlemen, Non-Profits, and Poverty}, year={2009}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4406}, url={https://www.iza.org/publications/dp4406}, abstract={In many markets in developing countries, especially in remote areas, middlemen are thought to earn excessive profits. Non-profits come in to counter what is seen as middlemen's market power, and rich country consumers pay a "fair-trade" premium for products marketed by such non-profits. This paper provides answers to the following five questions. How exactly do middlemen and non-profits divide up the market? How do the price mark up and price pass-through differ between middleman and non-profits? What is the impact of non-profits entry on the wellbeing of the poor? Should the government subsidize the entry of non-profits, or the entry of middlemen? Should wealthy consumers in the North pay a premium for fair trade products, or should they support fair trade non-profits directly?}, keywords={middlemen;non-profits;poverty;market access}, }