The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector

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ID: 291328
2007
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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.
Reference Key
openalex_W1964285328 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Robert T. Jensen
Journal the quarterly journal of economics
Year 2007
DOI
10.1162/qjec.122.3.879
URL
https://doi.org/10.1162/qjec.122.3.879
Keywords Keywords not found

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