Mobile Phone Use, Transaction Costs, and Price: Evidence from Rural Vegetable Farmers in Cameroon

Abstract

The widespread use of mobile phones in Cameroon should be translated into increased farmers’ income by reducing information-search costs. This study seeks to investigate the effects of mobile phone use on transaction costs related to price information search. Ordinary least-square estimations reveal a positive relationship between mobile phones use and transaction costs. The results show that farmers’ use of mobile phones increases their transaction costs for carrots and tomatoes, unlike for cabbages. This paper suggests the establishment of vegetable information centers that can serve as an interface between stakeholders in agriculture by channeling adequate and timely information to farmers.