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Information Processing, Technological Progress, and Retail Market Dynamics

In: Innovation, Networks, and Knowledge Spillovers

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  • J. Cukrowski

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.

Suggested Citation

  • J. Cukrowski, 2006. "Information Processing, Technological Progress, and Retail Market Dynamics," Springer Books, in: Innovation, Networks, and Knowledge Spillovers, chapter 4, pages 73-92, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-35981-4_4
    DOI: 10.1007/3-540-35981-8_4
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