Smartphones, information, and bargaining power: Evidence from pastoral areas in China

Abstract This study examines the impact of smartphone adoption on livestock trading in pastoral China. We develop a bargaining and search model with two mechanisms: information discovery, which reduces herders’ search costs, and information posting, which expands market access. Using household survey data, we find that smartphone adoption increases selling prices. Mechanism analysis shows that traditional phone functions improve information access, while smartphone-specific features, especially information posting, enhance bargaining power by expanding selling channels and trader access. These findings demonstrate that digital technologies affect market outcomes not only through improved information access but also by reshaping bargaining structures and market participation.