EconPapers    
Economics at your fingertips  
 

Strategic market research and industry structure in integrated economy

Jacek Cukrowski () and Manfred Fischer

Prague Economic Papers, 2003, vol. 2003, issue 4

Abstract: The paper is concerned with the impact of market research prior to integration with European Union (EU) on the structures of noncompetitive industries in integrated economy. The analysis focuses on monopolistic markets with stochastic demand. Firms are considered in dynamic multiperiod model, where intertemporal links are determined by expenditures on market research in a present period and benefits from this activity (i.e., smaller variance of the prediction error) in the future. We show that the optimal market research strategy is stationary and depends on market size. Consequently, after accession firms operating prior to integration in small markets are expected to have much less information about the total market than their competitors from the EU. This informational asymmetry may affect the structure of the industry in integrated economy. In the extreme case, the firm operating before integration in the small market can be ruled out from the integrated market.

Keywords: demand uncertainty; European integration; industry structures; asymmetric information; demand forecasting; barriers for entry (search for similar items in EconPapers)
JEL-codes: D80 F15 L10 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.vse.cz/pep/224 (text/html)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpep:v:2003:y:2003:i:4:id:224

Ordering information: This journal article can be ordered from
Editorial office Prague Economic Papers, University of Economics, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic
http://www.vse.cz/pep/

Access Statistics for this article

Prague Economic Papers is currently edited by Josef Arlt and Klara Pavlova

More articles in Prague Economic Papers from University of Economics, Prague Contact information at EDIRC.
Bibliographic data for series maintained by Frantisek Sokolovsky ().

 
Page updated 2019-12-18
Handle: RePEc:prg:jnlpep:v:2003:y:2003:i:4:id:224