%0 Report %A Chau, Nancy H. %A Goto, Hideaki %A Kanbur, Ravi %T Middlemen, Non-Profits, and Poverty %D 2009 %8 2009 Sep %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4406 %U https://www.iza.org/publications/dp4406 %X 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? %K middlemen %K non-profits %K poverty %K market access