Kathryn Graddy

Imperfect Information in the Fulton Fish Market

Reputation as a Barrier to Entry in the Fulton Fish Market

A large, centralized urban market for a specific, undifferentiated type of fresh produce has numerous independent sellers and a large, diverse group of buyers. Despite the high number of participants and the availability of stall space, new sellers are hesitant to enter due to the market's long-standing reputation for being controlled by an intimidating network that manages logistics. Furthermore, buyers are often unaware of the prices others are paying. Based on this description, which of the following best explains why this market fails to achieve perfect competition?

Weekend Time Allocation

A government simultaneously introduces two new tax policies. The first is a significant tax levied on the sale of single-use plastic bags. The second is an increase in the tax rate for the highest income bracket. Based on the distinct goals governments often pursue with different types of taxes, what are the most likely primary objectives for the plastic bag tax and the income tax increase, respectively?

Assessing Market Competitiveness

Market Structure Analysis

An employer is determining the profit-maximizing wage to offer a new employee. In the context of a game where the employer sets the wage first and the employee then chooses their effort level, what must the employer do first to make a rational decision?

Evaluating a Real-World Market Model

A well-known historical fish market was often cited as a real-world test for the economic model of a perfectly competitive market. For each real-world characteristic of this market listed, match it to the specific theoretical condition of perfect competition it addresses.

The primary reason the Fulton Fish Market failed as a real-world example of a perfectly competitive market was that it had too few sellers and the fish being sold were not a homogeneous product.

Market Imperfections and Outcomes