More cell phones, better grain prices
We already know that cell phone technology has enabled lots of people in remote areas to access bank accounts and government services. But here is a new one: a recent paper creates a model that predicts that cell phones in Niger will lead to a reduction in price dispersion. This would be true since cell phones enable grain traders to perform searches for better prices in areas where it would otherwise be too costly to search.
Interested? Register online for a discussion with the author held by the Center for Global Development in Washington, D.C.
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Such a system has been running in Zambia for a while now - anyone with a cellphone can get the price for any one of several agricultural crops in different cities. I don't know to what extent this has had an effect on price dispersion - try asking the Zambia National Farmers Union.
Such a system could be extended to other traded commodities or services, such as for cargo - carriers with an otherwise empty backload could make info available for those seeking to send a shipment and thus reduce costs for both.
Posted by: John Paton | Feb 23, 2008 2:24:52 AM