This paper builds a model of fragmented duopsony in backward agriculture following Basu and Bell (1991) in which the purchasers (traders) have captive markets each but compete in a contested market. We focus on the formation of captive markets through trader-farmer interlinkage in the form of...

This paper builds a model of fragmented duopsony in backward agriculture following Basu and Bell (1991) in which the purchasers (traders) have captive markets each but compete in a contested market. We focus on the formation of captive markets through trader-farmer interlinkage in the form of...

In the existing theoretical literature on credit-product interlinkage, the trader (interlocker) is not allowed to offer a Fixed-Rental Contract (FRC) where the trader leases-in land from the farmer in exchange of a fixed rent for self-cultivation. But if the trader is allowed to offer an FRC,...