Fisheries
Posted by AnneryanHeatwole on Sep 18, 2009
The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector data sheet 1367 Views
Abstract:
When information is limited or costly, agents are unable to engage in optimal arbitrage. Excess price dispersion across markets can arise, and goods may not be allocated efficiently. In this setting, information technologies may improve market performance and increase welfare.
Between 1997 and 2001, mobile phone service was introduced throughout Kerala, a state in India with a large fishing industry. Using microlevel survey data, we show that the adoption of mobile phones by fishermen and wholesalers was associated with a dramatic reduction in price dispersion, the complete elimination of waste, and near-perfect adherence to the Law of One Price. Both consumer and producer welfare increased.
Posted by LeighJaschke on Jul 14, 2009
The Digital Provide, Information (Technology), Market Place Performance, and Welfare in the South Indian Fisheries Sector data sheet 2819 Views
Abstract:
When information is limited or costly, agents are unable to engage in optimal
arbitrage. Excess price dispersion across markets can arise, and goods may not be
allocated efficiently. In this setting, information technologies may improve market
performance and increase welfare. Between 1997 and 2001, mobile phone service
was introduced throughout Kerala, a state in India with a large fishing industry.
Using microlevel survey data, we show that the adoption of mobile phones by
fishermen and wholesalers was associated with a dramatic reduction in price
dispersion, the complete elimination of waste, and near-perfect adherence to the
Law of One Price. Both consumer and producer welfare increased.
