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# Agricultural Market Communication Channels

## Definition

The information networks through which agricultural prices, demand conditions, and market opportunities are transmitted between producers and consumers, which Smith argues were severely restricted by medieval institutions that prevented the development of integrated agricultural markets.

## Source Chapter

Book III, Chapter 2

## Context

Smith shows how the lack of effective market communication prevented farmers from making informed production decisions, arguing that without knowledge of prices and demand conditions in distant markets, farmers could not specialize according to comparative advantage or respond efficiently to market signals.

## Economic Domain

Exchange

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