Transaction costs play a key role in the behaviour of smallholders in developing countries. We exploit the quasi experimental design of the introduction of an additional tobacco auction floor in Malawi in order to investigate the impact of a reduction in transaction costs and improved market...

Diversification into high-value cash crops among smallholders has been propagated as a strategy to improve welfare in rural areas. However, the extent to which cash crop production spurs projected gains remains an under-researched question, especially in the context of market imperfections...