Testing for “quiet-life” hypothesis among Sweet Potato farmers in Homa Bay County, Kenya

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Authors: Alphonce Juma Odondo
Cited by: 0

Abstract

This study examined whether sweet potato farmers in Homa Bay County, Kenya, behave in ways that match the quiet-life hypothesis, which argues that producers with more market power may become less efficient. Using cross-sectional data from 116 randomly selected farmers, market power was measured using the Lerner Index, while efficiency was assessed through output-input ratios. The analysis also included key structural and strategic factors such as firm size, market share, product differentiation, and market concentration (HHI). Both the linear and nonlinear econometric models used in the study met standard diagnostic criteria. The results show that market share, firm size, and product differentiation all have a strong and positive influence on efficiency, with market share standing out as the most important predictor. Although the Lerner Index is positively linked to efficiency in the linear model, this relationship becomes statistically insignificant in the nonlinear version. Market concentration does not have any meaningful effect in either specification. In conclusion, the findings do not support the quiet-life hypothesis. Instead, they suggest that moderate levels of market power improve rather than weaken operational efficiency. Based on these insights, interventions should aim to strengthen farmers’ competitive position through better marketing practices, greater product differentiation, and capacity-building initiatives that improve farm management and access to high-quality inputs. Support systems that enhance farmers’ bargaining power, such as cooperative marketing and improved access to market information, should be prioritised. While changing the overall market structure may have a limited impact, improving coordination across the sweet potato value chain can help farmers increase their market share and sustain higher efficiency levels.

Fields of Study & Subjects

Economics of Agriculture and Food Markets Agricultural economics and policies Efficiency Analysis Using DEA

Publication details

Journal / source
East African Journal of Agriculture and Biotechnology
Volume
9
Issue
1
Pages
56–75
Publication date
10 January 2026