Eva Lestant

Graduate Student Research Funding | 2023–2024 Academic Year

Selling (Together): Fostering Economies of Scale through Retail Cooperatives

 

In urban areas, traditional retail markets are essential for food accessibility, yet the sector remains largely informal with individual sellers sourcing goods independently. This study explores the barriers to cooperative behavior among retailers in Bouaké, Cote d'Ivoire, and investigates how a new organizational structure could improve cost efficiency and profit margins. A survey of 1,100 retailers across Bouaké's 28 markets revealed that individual sourcing leads to high transportation costs, constituting 71% of total expenses. While consolidating orders could reduce these costs through shared transport and bulk discounts, misconceptions about cooperation and the social costs of forming new links hinder collective action. Pilot tests indicated that external monitoring facilitated cooperation, but retailers were reluctant to maintain these practices independently. This research intends to test the frictions that prevent an organizational reform, enhancing retailers' margins and maintaining affordable food systems. This approach could also improve labor opportunities for women, who dominate the retail workforce, thereby contributing to broader socio-economic development.

Eva Lestant, Department of Economics

Eva Lestant is a Ph.D. student in economics at Stanford University with a focus on development economics, specifically the growth of small firms in urban areas. Prior to attending Stanford, Lestant worked as a pre-doctoral fellow at SIEPR, collecting panel data in the growing cities of Abidjan, Cote d’Ivoire, and Addis Ababa, Ethiopia. She also worked at the CREST Center in Paris, analyzing the long-term impact of a nationally implemented apprenticeship program in Cote d’Ivoire. Lestant holds an undergraduate degree in economics and finance from the Catholic University of Lille and a master's degree in economics from Institut Polytechnique de Paris.

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