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Understanding The Demand Side And Coordinating The Supply Side For Connected Goods And Services

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  • Ladegard, Gro
  • Romstad, Eirik

Abstract

This paper addresses the coordination and innovation issues needed for promoting value added at the rural and regional level. There are two sides to value added: the ability to meet consumer demand, and to identify least cost ways of supplying the demanded goods. Human and social capital plays an important role on both sides. At the municipality level the supply side issues are complex. First, because the production space has far more dimensions than for the single entrepreneur. Second, because the value of some goods and services produced depend on what other goods and services that is available. On the supply side networks are important to solve the coordination issues, while networks for identifying and understanding consumer preferences are important on the demand side. Participation in these two network types compete for the same scarce resource, the time of the inhabitants of a municipality. We address these issues in more detail. A major insight from our work is that in addition to the time conflict, innovation and new information may make it more difficult to maintain coordination networks.

Suggested Citation

  • Ladegard, Gro & Romstad, Eirik, 2010. "Understanding The Demand Side And Coordinating The Supply Side For Connected Goods And Services," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 4(1-2), pages 1-7.
    • Handle: RePEc:ags:apstra:91107
    DOI: 10.22004/ag.econ.91107
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    References listed on IDEAS

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    1. Yves Léon, 2005. "Rural development in Europe: a research frontier for agricultural economists," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 301-317, September.
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    1. Katona-Kovacs, Judit & Dax, Thomas & Machold, Ingrid, 2011. "Governance of market in the case of local food systems as crucial dimension of the „rural web“ – case study of an Austrian and a Hungarian National Park region," Rural Areas and Development, European Rural Development Network (ERDN), vol. 8, pages 1-21.

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