Adaptation to Uncertainty and Small Numbers Exchange: The New England Fresh Fish Market
Volume: Volume 11, No. 2
Issue: Autumn 1980
Pages: pp. 491-504
Authors: James A. Wilson
Title: Adaptation to Uncertainty and Small Numbers Exchange: The New England Fresh Fish Market
Abstract: Relatively inaccurate and slow dissemination of market information and location and ownership factors cause trading to take place under conditions of uncertainty and small numbers. The inefficiencies and inequities which might otherwise result in each individual transaction are mitigated by a pattern of very personal, long-term, bilateral agreements. These agreements deal with the efficiency and equity problems through a system of reciprocation over time. Nevertheless, the collective effect of the agreements, under certain common conditions, is to suppress further the flow of market information and seriously to impair product quality incentives and other measures of market performance.
JEL Classification
Market Structure: Industrial Organization and Corporate Strategy (6110)
Industry Studies Distributive Trades General (6330)