The impact of improved access to market information through mobile phones usage on selling prices: Evidence from rural areas in Cambodia

Monopsony is often observed in local agricultural markets in developing countries because of the high entry cost to buyers; farmers in such markets therefore sell their agricultural products at a lower price. However, this situation seems to be changing with the diffusion of mobile phones. This paper investigates how access to market information through mobile phone usage impacts the selling price of rice in rural areas in Cambodia. We conducted a survey of farmers f households concerning agricultural production processes and rice sales in 20 villages in four provinces (Battambang, Prey Veng, Pursat, and Takeo). We find that farmers who have access to market information through the use of mobile phones are more likely to sell their rice at a higher price. In addition, we observe that the offers received by farmers with better access to market information through mobile phone usage tend to affect selling prices. The results imply that improved access to market information through the use of mobile phones improves farmers f bargaining power against traders, enabling them to sell their rice at a higher price.