“Price
dispersion is a manifestation—and, indeed, it is
the
measure—of ignorance in the market” (Stigler, 1961)
®Badiane and Shively (1998)on Ghana: “…the estimated time to fully transmit a price shock to each of two outlying markets is about
four months.”
®China: accurate price information (via
phone) can increase
farmer revenue by 60% and improve regional productivity.
Example on right
one of many studied where ability to compare prices in village and ‘big city’
via phone not only resulted in lower average price to the consumer, but
resulted in significantly lower variation in prices as well.