Middlemen in the Market for Grain: Changes and Comparisons

Abstract

The role of middlemen in the market for grain changed with the advent of standardized grain grading. Prior to grain grading, economies of scale were limited because of the requirement that middlemen develop strong personal reputations though the maintenance of multi-faceted relationships with clients. Grain grading homogenized grain, making it possible for middlemen to take advantage of economies of scale in their operations.