Abstract
The chapter analyses the potential impact of technological progress in information processing on the size of retail markets. The analysis — restricted to a single commodity market with uncertain demand — shows that the ability of firms to process information and predict demand may affect the characteristics of retail markets. The results, moreover, indicate that risk-averse firms always devote resources to demand forecasting, producers are better off trading with retailers than with final consumers, and the volume of output supplied through retail markets is greater than it would be if producers traded directly with consumers.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Cukrowski J. (1996): Demand uncertainty, forecasting and monopolistic equilibrium, CERGE-EI Working Paper 97, Center for Economic Research, Prague
De Canio S.J. and Watkins W.E. (1998): Information processing and organisational structure, Journal of Economic Behavior and Organisation 36(3), 275–294
Ghosal V. (1996): Does uncertainty influence the number of firms in an industry? Economics Letters 50, 229–223
Heal G. (1980): Spatial structure of the retail trade: A study in product differentiation with increasing returns, The Bell Journal of Economics 11(2), 565–583
Jeannet J.P. and Hennessey H.D. (eds.) (1995): Global Marketing Strategies, Houghton Mifflin Company, Boston
Leland H.E. (1972): Theory of the firm facing uncertain demand, American Economic Review 62, 278–291
Lim C. (1980): Ranking behavioral modes of the firm facing uncertain demand, American Economic Review 70(1), 217–224
Nelson R.R. (1961): Uncertainty, prediction, and competitive equilibrium, Quarterly Journal of Economics 75, 41–62
Radner R. and Van Zandt T. (1992): Information processing in firms and return to scale, Annales d’Economie et de Statistique 25/26, 265–298
Sandmo A. (1971): On the theory of the competitive firm under price uncertainty, American Economic Review 61, 65–73
Sargent T.J. (1987): Dynamic Macroeconomic Theory, Harvard University Press, Cambridge [MA]
Webster F. (1994): What information society, The Information Society 10, 1–23
Wilson R. (1975): Informational economies of scale, The Bell Journal of Economics 6(1), 184–195
Rights and permissions
Copyright information
© 2006 Springer Berlin · Heidelberg
About this chapter
Cite this chapter
Cukrowski, J. (2006). Information Processing, Technological Progress, and Retail Market Dynamics. In: Innovation, Networks, and Knowledge Spillovers. Springer, Berlin, Heidelberg . https://doi.org/10.1007/3-540-35981-8_4
Download citation
DOI: https://doi.org/10.1007/3-540-35981-8_4
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-35980-7
Online ISBN: 978-3-540-35981-4
eBook Packages: Business and EconomicsBusiness and Management (R0)