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Additional resources for [Article] The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector

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26 To explore this issue, we estimate the pooled treatment regressions using the maximum values of the coefficient of variation and max–min spread observed at any time (thirty-minute interval) during the day. Columns (3) and (4) of Table VI show that the estimated effects are only slightly smaller than the original estimates (columns (1) and (2) of Table IV) when this adjustment is 25. However, these towns were chosen because their proximity to roads made it feasible to survey them on a regular basis (for a weekly consumer price survey, discussed below), and they are therefore wealthier and have better infrastructure on average than other towns or villages in the region.

However, the change in the average market clearing price, which is what is measured by the retail price survey, is not the same as the change in the average price paid by consumers; in general, the latter will typically be less than the former (and may even have the opposite sign). Unfortunately, we do not have high frequency consumption data at the household level, so we cannot estimate the change in the purchase price of fish. 37. Newbery and Stiglitz [1981] and Wright and Williams [1988] provide frameworks for analyzing the welfare effects of price stabilization, but, unfortunately, these frameworks cannot be directly applied to the current case.

Thus, while violations can still be found, markets arrive at a very close approximation to the LOP. 33 V. e, reallocating them to where they are more highly valued on the margin, including the elimination of waste. As shown earlier, how the gain is shared between producers and consumers and whether each group gains or loses on net is ambiguous. We take a reduced-form approach and provide simple estimates of the welfare changes. For fishermen, changes in profits are an appropriate measure of changes in welfare since fixed costs do not change and supply appears to be 32.

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