Project overview
The research investigates how limited information about product quality, together with weak enforcement of quality standards and commercial contracts, influences consumer purchasing decisions and business performance. Using detailed firm and customer data, the study analyses how customer relationships are formed, how product quality shapes market outcomes, and the institutional barriers that prevent productive firms from expanding their customer base. The research provides new insights into the demand-side constraints limiting enterprise growth in developing economies.
Research impact
The findings demonstrate how information frictions and institutional weaknesses reduce market efficiency and constrain the growth of productive firms. The research informs policies aimed at improving market transparency, strengthening quality assurance systems, enhancing contract enforcement, and creating an enabling environment for enterprise development.
