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New Markets as Informational Asymmetries

Author

Listed:
  • Eric Scorsone

    (University of Kentucky)

  • Stephan Weiler

    (Federal Reserve Bank)

Abstract

The neglected advantages of “new markets†in marginalized rural and inner-city areas have been touted in the policy arena since the early 1990s. Althoughmuch of the motivation has been based on equity, there are potentially strong efficiency arguments for such renewed attention. This article proposes a unique combination of classic and more recent work on informational market failures to understand new markets as examples of informational asymmetries, which can provide the rationale for both private and public support of new market ventures. Furthermore, this perspective can help explain persistent intraregional differences in economic development prospects due to path dependencies inherent in varying informational settings.

Suggested Citation

  • Eric Scorsone & Stephan Weiler, 2004. "New Markets as Informational Asymmetries," Economic Development Quarterly, , vol. 18(3), pages 303-313, August.
    • Handle: RePEc:sae:ecdequ:v:18:y:2004:i:3:p:303-313
    DOI: 10.1177/0891242404265139
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    References listed on IDEAS

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    Cited by:

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    2. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, number 2005arotfrire, March.

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