DIGITAL MARKETING, MARKET TRANSPARENCY AND FOOD PRICE STABILITY: A STRUCTURAL MODEL APPROACH

Abstract

Food price volatility remains a persistent challenge in emerging economies, undermining macroeconomic stability and consumer welfare. While structural and macroeconomic determinants of food price instability are widely studied, the role of digital marketing and market transparency mechanisms has received limited systematic attention. This study develops a structural conceptual model linking digital marketing adoption, information transparency, and domestic food price stability. Drawing on information asymmetry theory, digital market efficiency theory, and price transmission frameworks, the paper proposes that digital marketing ecosystems enhance price transparency, reduce informational frictions, and moderate speculative distortions in domestic food markets. Using a structural model approach supported by cross-country panel indicators and market transparency proxies, the study demonstrates that higher digital penetration and online retail integration are associated with lower price dispersion and reduced volatility persistence. The findings reposition digital marketing not merely as a demand-creation tool but as an institutional mechanism contributing to macro-level price stabilization.