In an experiment where potato farmers in randomly chosen villages in two Indian districts were provided information about prices at which middlemen resold their output, we need no signicant average treatment eects on traded quantities or revenues, but both became more responsive to market price variations. The results conrm predictions of a model of ex post bargaining and sequential price competition between village middlemen and external middlemen, where farmers lack direct access to wholesale markets. Alternative explanations such as collusion, simultaneous price competition and insurance via relational contracts between
middlemen and farmers can be ruled out. (JEL Codes: O120, L140)