Fishermen's Strategic Use of Mobile Phones for Market Selection
With the advent of mobile phones, fishermen gained the ability to gather real-time price information while still at sea. This allowed them to contact various beach fish markets before landing and strategically choose to sell their catch at the location offering the highest price on that particular day.
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Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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Information and Market Efficiency
In a region with many isolated local markets for a perishable good, sellers historically had little information about prices in other locations, leading to significant price differences and occasional waste from unsold goods. A new technology is introduced that gives all sellers instant access to real-time price data from every market. Which of the following outcomes is the most direct and significant consequence of this technological change?
The introduction of a technology that provides real-time price information across multiple, previously isolated local markets for a perishable good will result in economic gains for every single participant group involved (producers, consumers, and intermediaries).
Information, Behavior, and Market Outcomes
Mechanism of Market Price Convergence
A group of producers of a perishable good, who operate in several geographically separate local markets, gain access to a new technology that provides them with real-time price information for all locations. Arrange the following events in the logical order they would occur, showing how this new information transforms the market.
After a new technology provided widespread, real-time price information in a previously fragmented market for a perishable good, different groups were affected in distinct ways. Match each market participant or entity with the primary outcome they experienced.
When producers in a fragmented market for a perishable good gained access to real-time price information, they could actively seek out the specific locations offering the highest prices to maximize their income. This strategic behavior, aimed at capturing economic gains that arise from temporary market inefficiencies, is an example of ________.
In a large city, flower vendors operate in several distinct neighborhoods. Historically, a lack of communication meant that on any given day, a surplus of unsold flowers in one neighborhood could coincide with a shortage and high prices in another. When these vendors adopt a smartphone app that shows real-time supply and demand data for all neighborhoods, the overall price for flowers across the city stabilizes, and less product is wasted. Which economic principle best explains why this technological change led to these specific outcomes?
Impact of Information on Market Intermediaries
Fishermen's Strategic Use of Mobile Phones for Market Selection
Learn After
Fisherman's Daily Catch Decision
Before the widespread use of mobile phones, fishermen in a region with several coastal markets would sail to the nearest port to sell their daily catch, often resulting in large price variations for the same type of fish between markets. After mobile phones became common, these price differences decreased substantially. What is the most likely economic explanation for this change?
Impact of Mobile Phones on Fish Market Stakeholders
A study of a regional fish market found that after fishermen began using mobile phones to check prices at different ports before landing their catch, the market dynamics changed significantly. Match each market participant with the most likely outcome they experienced as a result of this new technology.
The introduction of mobile phones, which allowed fishermen to check prices at various coastal markets before landing their catch, primarily benefited consumers through lower average fish prices, while the fishermen themselves saw little to no increase in their profits.
A fisherman has just completed a day's catch and has access to a mobile phone, allowing communication with several different coastal markets. Arrange the following actions in the most logical sequence that leverages this technology to maximize the fisherman's profit for the day.
The Market Problem Solved by Mobile Phones
In a coastal region with several distinct fish markets, fishermen historically sold their catch at the nearest port, leading to significant price differences and occasional spoilage if a market was oversupplied. If a new program equips all fishermen with mobile phones to get real-time price information from all markets before docking, which of the following is the LEAST likely outcome?
Evaluating Market Information Interventions
When fishermen use mobile phones to survey prices and sell their catch at the highest-paying port, their collective actions reduce price differences between markets. This process drives the market toward a state described by the economic principle known as the ________.
A study of a regional fish market found that after fishermen began using mobile phones to check prices at different ports before landing their catch, the market dynamics changed significantly. Match each market participant with the most likely outcome they experienced as a result of this new technology.