Information, Efficiency And Welfare In Agricultural Markets
Information and communications technologies (ICTs) have spread rapidly in the developing world. There has been considerable interest in the potential role ICTs, particularly mobile phones, have begun to play in the marketing of agricultural outputs in these countries. In this paper, we discuss the potential impacts ICTs may have on welfare, both in terms of potential efficiency gains (via improved arbitrage), and welfare transfers among agents in the supply chain (via reduced informational asymmetries and market power). We also review the recent empirical evidence for such effects.
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