Two recent examples show how mobile phones can improve peoples' access to information in developing economies. Robert Jensen studied the effect of the growth in mobile phone use in fishing villages in the Indian state of Kerala. As cellular coverage grew from nothing to 100% from 1997 to 2000, the fish market became more efficient: fishermen knew where that days' catch would fetch a good price, price fluctuations between villages diminished, and fewer fish were discarded at the end of each day. A second example shows how markets for agricultural goods -- accessed via phone -- aided farmers in East Africa. The Kenyan Agricultural Commodity Exchange makes nationwide prices available through text messages. Prior to the Exchange, the main source of pricing information was the middleman to whom the farmers were selling -- people who were motivated to buy the commodity as cheaply as possible. Armed with better pricing information, farmers can now sell their goods for prices closer to market rates.
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