Use Of Market Information Research Articles

Determinants of market outlet choices by smallholder mango farmers in Aleta Chuko District, Sidama Region, Ethiopia: a multivariate probit approach

Selecting appropriate market outlets offer the opportunity for farmers to capture a bigger share of the price paid by final consumers. However, smallholder farmers in developing countries are still confronted with myriad challenges regarding selecting profitable market outlets. Thus, the main objective of this study was to analyze determinants of market outlet choices by smallholder mango farmers in Aleta Chuko District, Sidama Region, Ethiopia. The study's representative 391 sample mango producers were selected using a multi-stage sample selection technique and a cross-sectional research approach. Descriptive statistics and the multivariate probit model were used to analyze the data. The result of the study showed that the probability of mango producers to choose consumer, collector, and retailer and wholesaler market outlets was 38%, 39.4%, 41% and 25%, respectively. This shows that retailer was the most likely chosen market outlet while wholesaler was the less likely chosen market outlet. The joint probability of farmers to choose the four market outlets is (0.042%) lower than the likely of not choosing four market outlets (23.21%). The result of the multivariate probit model showed that the sex of the household head, age of the household head, educational level of the household head, the quantity of mangoes produced, size of the land allocated for mango production, use of market information, credit access, livestock holdings, and distance to the nearest market were all statistically and significantly influencing factors in the market outlet choice behavior of mango producers. Based on the results of this study, the government and other concerned organizations should take action to improve the efficient marketing of mango producers in all outlets by providing market information, expanding and following up on extension services, increasing credit access, and building roads and other marketing infrastructure in the study area.

Can market information outperform hard and soft information in predicting corporate defaults?

AbstractRecent evidence has shown that hybrid models for credit ratings are important when assessing the risk of firms. Within this stream of literature, we aim to provide novel evidence on how hard (quantitative), soft (qualitative), and market information predict corporate defaults for unlisted firms by implementing the Cox proportional hazard model. We address this research question by exploiting a unique proprietary dataset comprising of detailed information on internal credit ratings of European unlisted mid‐sized firms and compute their Merton's distance‐to‐default (DD) measure of credit risk with market data collected on comparable publicly listed companies. Our results show that the bank's use of hard, soft, and market information when assessing the credit ratings of borrowers has a significant influence on the prediction of their defaults. Further, we investigate the significant influence of soft information in predicting corporate defaults by drawing on two separate processes through which loan officers can inject soft information in credit scoring, that is, ‘codified’ and ‘uncodified’ discretion. Finally, when we distinguish between the loan officer's discretion to upgrade or downgrade an applicant's credit score, we find that it is the upgrade that is likely to predict a lower probability of a firm defaulting. This study contributes to the policy debate on safeguarding the banking sector's continuity by positing that integrating market information into banks' hybrid methods of credit rating helps to improve the accuracy in predicting unlisted firms' credit risk that is useful to policy makers for the design of future forward‐looking financial risk management frameworks.

The impact of market information use on entrepreneurial performance: insights from the UK food industry

PurposeThis paper explores the nuanced relationship between individual and firm performance through the lens of market information use, in the specific context of small businesses, shedding light on the specificity of information use and impact of information use on both types of performance.Design/methodology/approachA mixture of subjective and objective data from a sample of small food producers engaged in an action research project with a major UK supermarket was used to test hypotheses developed from the information management, marketing and small business literature.FindingsThe results suggest that the effective use of market information has a significant impact on the performance of both the individual and the organization but independently of each other. The result provides evidence of the potential “disconnection” between individual and organizational levels of performance and the tension that exists in small businesses between operational and strategic decision-making and the use of market information therein.Research limitations/implicationsWhile the author's study benefits from access to individual decision-makers and objective organizational performance data, the study is not without its limitations. Chief among these is the small sample size. Moreover, while there are clear benefits to working with a homogeneous sample of small food producers supplying the same key customer in the same market, generalizing to small food businesses operating in other distributions channels and small businesses in other sectors is also difficult.Practical implicationsWhen analyzing the performance of marketing managers, owner-managers should pay attention to the incentives for them to invest time and effort in the effective use of market information as the disconnection between individual and firm performance can have negative implications for their personal development and the overall firm performance.Originality/valueThis study explores a missing link in the extant body of small business literature, i.e., the role played by key individuals with responsibility for the marketing function within small businesses and the relationship between small businesses' approach to the use of market information and performance at a functional level and the overall firm performance.

Marketing strategy decision making in new product development: direct effects and moderation by market information time sensitivity and analyzability

PurposeResearch on market information use in product innovation suggests that firms utilize two key strategic decision-making processes: incremental and comprehensive. Drawing from organizational information processing theory, literature implies that these processes operate differently. However, this assumption remains untested. Moreover, the degree to which a comprehensive process affects the innovation strategy outcomes depends on market information time sensitivity (MITS) and analyzability. To-date, no study has tested these assertions, either. Finally, it is suggested that meaningful market strategy is a key driver of new product success and it is important to understand how decision-making processes influence it under differing time sensitivity and analyzability.Design/methodology/approachBased on survey data from 250 Chinese firms, authors use structural equation modeling to test the hypotheses.FindingsThe results generally support authors’ contentions. More specifically, marketing strategy outcomes are influenced by marketing strategy incrementality (MSI) and marketing strategy comprehensiveness (MSC) differently. Further, time sensitivity moderates the effect of both MSI and MSC on outcomes, except for the effect of MSI on decision quality. Finally, analyzability moderates the relationships between decision making processes and certain strategy outcomes such as between MSI and meaningfulness.Originality/valueDrawing from information processing theory, authors argue that incremental and comprehensive marketing strategy decision making for new product operate differentially under the same conditions. Further, the effects of these decision processes on outcomes depend on time sensitivity and analyzability of market information. Finally, auhtors argue that meaningful market strategy is a driver of success. The authors find support for most of our hypotheses and provide directions for future research.

Reassessing bank monitoring models: an empirical analysis of the value of market signals in the period 2008–2020

One of the major goals of bank supervisors is to predict bank distress events. As the environment changes, it is crucial to reassess and improve the models used in monitoring banks. The financial soundness of banks is traditionally assessed based on accounting ratios. However, the incorporation of market information in these models may significantly improve its ability to predict bank distress. The present paper has two main objectives, the first is to assess if market information adds value to accounting-based monitoring models when the purpose is to detect bank distress situations. Further, it also seeks to understand if the predictive power of market signals increased with transparency requirements. To accomplish this purpose, a total of 81 distress events from a sample of 248 European banks between 2008 and 2020 were analyzed. First, a logit univariate analysis was used to evaluate the relevance of each accounting and market variable. Then, the optimal multivariate accounting-based model to predict distress events was constructed using a stepwise approach. Finally, the previous model was extended to include the relevant market variables. The results support the use of market variables in bank monitoring models. Further, the present study provides evidence that the predictive power of market variables increased after the strengthening of the information requirements set by the Basel agreements. It can be concluded that the results support the use of market information for banking supervisory purposes, especially, in transparent markets.Supplementary InformationThe online version contains supplementary material available at 10.1057/s41261-022-00194-4.

Public Market Information and Venture Capital Investment

AbstractI study venture capital firms’ (VCs) use of public market information and how attention to this information relates to private market investment outcomes. I link web traffic to public filings hosted on EDGAR to individual VCs. VCs analyze public information about industry peers before most deals. An increase in industry filing views relates positively to the probability of an exit through acquisition, suggesting that public information helps identify paths to acquisition. The effect is stronger when the VC has less access to private information, especially for low-reputation VCs. Policymakers should consider spillover effects on private markets when setting public disclosure requirements.

The Distortionary Effects of Central Bank Direct Lending on Firm Quality Dynamics

Bypassing the banking systems, central banks around the world lent to nonfinancial firms on an unprecedented scale during the Covid-19 crisis. Effective and necessary as it is, direct lending is subject to credit mispricing given central banks' lack of information on individual borrowers. Our dynamic model characterizes a downward bias in firm quality distribution that is self-perpetuating: Direct lending in the current crisis necessitates a greater scale of interventions in future crises, which in turn cause more severe distortion of firm quality distribution. Such effects are amplified by firms' forward-looking investment decisions in normal times. Low-quality firms overinvest to take advantage of underpriced central bank credit in future crises while, on a relative basis, high-quality firms underinvest. The distortionary effects can be mitigated by central banks' use of market information, collaboration and regulation of informed banks, and coordination of direct lending and conventional monetary policy.

Effects of consumer bargaining power on price flexibility of gari in Imo State, Nigeria

The study examined the effect of consumer bargaining power on price flexibility of gari in Imo State, Nigeria. Data were drawn from the three agricultural zones in the state. A functional market in each of the zones was randomly selected. Primary data were obtained by means of interview schedule (questionnaire) administered to consumers of gari at retailers’ shops. Data were analyzed using descriptive techniques and ordinary least square (OLS) multiple regression analysis. The result showed that mean weekly consumers unit price of gari was ₦47.340/kg with a mean weekly purchase of 5.5 kg/week. About 53.33% of gari consumers have a weak bargaining index of 18.09, while the mean bargaining power of gari is 64.09% and this gave a baseline for gari retail price. The result of multiple regressions showed that the co-efficient of price of substitute (X1) household size (X6) and consumers income (X7) are positive and have significant relationships with consumers’ bargaining power. Consumers’ awareness of their bargaining power and good understanding of marketing system and its modus operandi, price trends, formation and fixing could help them take their proper place as price givers and kings in the market place hence, this study recommends the need for consumers’ to improve their level of education in order reposition themselves to make good use of market information to their advantage in bargaining. Consumers should form co-operative societies through which they can share market information, buy gari in bulk to reduce retail prices and at the same time play a key role in price formation. Keywords: Bargaining power, consumers, retailers, price flexibility, gari commodity.

Access and use of agricultural market information by smallholder farmers: Measuring informational capabilities

AbstractWhile farmers sell their crops, middlemen provide a linkage between them, markets and buyers. Middlemen have good knowledge of working conditions of markets and have access to agricultural market information. Due to poor access to markets and agricultural market information by smallholders, there is a feeling that middlemen benefit more while farmers sell their crops. Good access to markets and market information may help farmers bypass middlemen while selling crops and thus benefit more. Thus, it is best to improve the informational capabilities (ICs) of farmers in agricultural marketing. Thus, this research measured ICs of farmers accessing market information, through a program NINAYO, while selling their crops. The research utilized the informational, psychological, social, and economic dimensions of the empowerment framework in identifying capability indicators to formulate survey questions. Data were collected from smallholders in six regions in Tanzania. The analysis utilized measures of life satisfaction and results showed that about half of the variation in the dependent variable, satisfaction with capabilities, was explained by the model. Backward elimination analysis confirmed that life satisfaction is multidimensional. Robustness test confirmed a positive relationship between satisfaction and capabilities. Overall, results confirmed ICs are multidimensions, their improvement empowers farmers in agricultural marketing.

Methods of marketing investigations in the system of environmental marketing

Introduction. The effective use and analysis of market information about the market, its market conditions, consumer behavior becomes of special importance in the process of development of ecological marketing as a fundamental and applied discipline. And it is precisely on the quality of the results of marketing research that will depend on further strategy and competitiveness of the enterprise. That is why the question of marketing research and the methods of their conduct is relevant. Methods. Such methods as analysis and synthesis, comparison, formalization are used when writing the article. Results. Taking into account the definition of various scientists, as well as the fact that in our opinion, ecological marketing and marketing as a whole is part of the management process, marketing research should be regarded as “the process of systematic collection and analysis of data necessary to make managerial decisions to achieve the goals and objectives of the enterprise”. Discussion. Further research will focus on identifying the most effective and optimal market research methods, collecting primary data, assessing consumer behavior and optimizing business development strategies. Keywords: methodology, marketing research, ecological marketing, agrarian sector.

Public Market Information and Venture Capital Investment

I study VCs’ use of public market information and how attention to this information relates to private market investment outcomes. I link web traffic to public filings hosted on EDGAR to individual VCs. VCs analyze public information about industry peers before most deals. An increase in industry filing views relates positively to the probability of an exit through acquisition, suggesting that public information helps identify paths to acquisition. The effect is stronger when the VC has less access to private information—especially for low reputation VCs. Policymakers should consider spillover effects on private markets when setting public disclosure requirements.

Marketing information, management and use: the case of Saudi Arabia

Purpose Obtaining, managing and using proper marketing information are considered an important strategic issue that cannot be ignored in the light of stiffening competition locally and internationally. Therefore, the purpose of this study is to examine the level of importance attached by Saudi industrial organizations to good management and use of quality marketing information. Design/methodology/approach A questionnaire method was used to collect the required data. Using a self-distributed method, the questionnaire was provided to top management levels of 80 companies from different industrial sectors in Saudi Arabia, selected randomly from a list provided by Saudi’s Chamber of Industry. Despite all attempts, only 30 completed questionnaires were returned and used in the statistical analysis for this study. This gave a response rate of 37.5 per cent. Used in this study’s statistical analysis were descriptive statistics such as frequencies, measures of central tendency such as the mean and median, measures of dispersion such as standard deviation and measures of distribution such as skewness and kurtosis. Advanced statistics, such as factor analysis statistics, were also used. Findings The study’s findings indicate how company variables are related to the ideal and actual marketing information application variables. Management’s capacity to develop a marketing plan and effectively observe the improvement may be the most demanding part of achieving desired results. This study further examined the degree to which Saudi business organizations are aware of how important it is to obtain and use proper marketing information. To develop good marketing plans, those business organizations must understand the nature of Saudi’s social structure. Its organization and welfare services are rooted in the values and traditions of Arab Muslim Culture. One of the five basic Pillars of Faith in Islam is the practice of Alms-giving and care of needy. Furthermore, people’s behavior is heavily influenced by the value, norms and expectations of Islam. Research limitations/implications This research offers a methodology to develop a better comprehension of the importance of having good management of marketing information and its use in Saudi Arabia via a description of the significant variables that form marketing information management and use. The current study also calls for more empirical research into this area of marketing in Saudi Arabia. The empirical nature of this study revealed some recommendations for future work that should look into the issues highlighted in this study. It would be useful to apply this study to other similar contexts, which may prove helpful in reexamining the validity of its results. However, further studies are needed to validate the findings of this study, as all behavioral and cultural variables were not investigated and are left for future research. In addition, this is a deductive research; therefore, some important variables may have been omitted, which is another reason for recommending more empirical studies of this type in Saudi Arabia and similar contexts. Practical implications Investigating this type of study in Saudi Arabia gives a unique implication, as it calls for better understanding of the Islamic Marketing Environment of this country, which has two important holy Mosques of Islam (i.e. Al-Haram and the Prophet’s Mosques). There is no denying that the marketing environment characteristics in any society are affected by environmental circumstances, and Saudi Arabia as the most important Muslim Country, is no exception. Originality/value The central issue of this paper is related to the importance of having, managing and using good marketing information by industrial organizations. With this issue in mind, this study was carried out in a Muslim country (i.e. Saudi Arabia). Although the Saudi market has many dealers, domestic and international trades and co-operatives, there is little relevant data about the existing marketing systems, i.e. scarcity of market data and information concerning demand, consumption, opportunities and competition.

Trust, perception, and managerial use of market information

This study aims to enrich international business theory and practice by being the first study to investigate how both inter- and intra-organizational managerial trust in the source of market information contributes to its’ perception and use and by examining the contingent role of structural fluctuations and market turbulence. Structural equation modelling of cross-sectional survey data of 158 firms in Hungary shows that trust is an important driver of utilization of market information. Perceived information quality mediates the effect of trust on information use partially when it derives from intra- and fully when from inter-organizational source. When unpredictable changes occur due to structural fluctuations of the firm, the role of trust in quality perception of market information becomes more prominent. However, changes in the environment due to market turbulence do not moderate the effect of trust on perceived quality of information from inside, only from outside the firm.

Internationalization of Small and Medium Enterprises from Arusha Tanzania: Market Information, Financial Resources and Product Quality Setbacks

The small and medium enterprises (SMEs) are key players towards reviving the economy and livelihood development in Tanzania, yet their involvement in international business is still unsatisfactory. This study therefore assessed the three major setbacks for industrialization of Arusha’s SMEs namely as information, finance and quality. A cross-section research design was conducted using questionnaires. Through non-probability sampling, 50 respondents were stratified selected from SMEs owners, employees, business development support organizations and regulators. Data was analysed using descriptive statistics and logit model. The findings on the existing business environment revealed that: majority of the SMEs involve women (68%) dealing with handcraft and tailoring, with less than five years of business experience. Moreover, the major identified information setbacks are low access to information source, use of irrelevancy market information, use of in effective medium of communication and high cost of the information. Besides, other financial related setbacks are limited sources of capital, lack of collateral, poor credibility history and high transaction cost. On quality setbacks include selling semi processed products, poor finished product and packaging materials as well insufficient processing machinery. Thus for SMEs internationalization the following recommendations are established: improving accessibility and affordability of relevant market information; designing various financial products at reasonable lending rates, strengthening entrepreneurial skills and formalization of enterprises; enhancing availability of processing machinery and packaging materials for improving product quality and competitiveness as well as avoiding selling of semi processed products . Above all, the government, regulators, private sector organizations and other key players along the value chain must play their respective relevant role towards supporting SMEs.

English

The study seeks to establish the interaction effect of export market information use on the relationship between international market selection and the choices of export markets for Uganda’s agricultural commodities. A cross sectional study format, heavily hinged on a hypothetic-deductive approach was adopted and the multiplicative effect was represented by Modgraph. The effect of systematic international market selection on export market selection differs as a function of export market information use. A positivist research paradigm guided the study and therefore a more qualitative perspective would compliment the results of this study. Secondly, multiple observations of the same variables over 5 to 10 years accounting for structural changes (that is, the creation of new trading blocks as well as new bi-lateral agreements) give a finer picture. Hosting sector specific international exhibitions and agricultural commodity exporters in Uganda would significantly affect export market choices and performance. This is the first study to test for the interaction effect of export market information use on the relationship between International market selection and the choice of export markets Key words: International market selection, export market information use, agricultural exports, Uganda.

ФОРМУВАННЯ ПОПИТУ ТА ПРОПОЗИЦІЇ НА ФАХІВЦІВ З МАРКЕТИНГУ В УКРАЇНІ

The labor market in Ukraine, which is determined by the development of the education market, is investigated. The structure of supply and demand in the labor market of Lviv region and Ukraine is determined, the detailed analysis of the demand for marketing specialists is conducted. The dynamics of demand and direction of specialty "Marketing" in the largest universities in Ukraine is determined with the use of secondary marketing information. The expediency of introducing the concept of marketing activity in graduating department of educational institutions that provide training in marketing and the importance of proper practical training is reasoned. REFERENCES1. Dmytriv A.Ya., Baluk N.R. and Buk L.M. (2011), Innovative approach to teaching marketing disciplines in the context of the growing popularity of the marketing profession, Zbirnyk naukovykh prats’ Formuvannia rynkovoi ekonomiky (Spets. vyp. Marketynhova osvita v Ukraini), pp. 43-53.2. Oherchuk Yu.V. and Kachanovets’ka O.S. (2012), Marketing Education in Ukraine: providing quality training for meeting the needs of marketing specialists in Ukrainian market, Tezy dopovidej IX Mizhnarodnoi naukovopraktychnoi konferentsii Marketynh ta lohistyka v systemi menedzhmentu [Proceedings of the IX International scientific-practical conference Marketing and logistics in the system of management], National University "Lviv Polytechnic", Lviv, Ukraine, pp. 306–308.3. Khtej N.I., Dryl’ O.I. and Zemliak I.Ya. (2012), Marketing specialists in the labor market: problems of training and professional adaptation, Visnyk Natsional’noho universytetu L’vivs’ka politekhnika Lohistyka, vol. 735, pp. 236–243.4. Fakty (2016), Professions of 2015 in Ukraine, available at: http://fakty.ictv.ua/ua/index/read-news/id/1545470 (Accessed 16 March 2016).5. Rabota.ua (2016), The dynamics of the labor market, available at: http://hrsovet.rabota.ua/dinamika-ryinkatruda-v-yanvare (Accessed 3 March 2016).6. Rabota.ua (2016), Marketing: most wanted specialists and salaries review, available at: http://blog.rabota.ua/marketing-samyie-vostrebovannyie-spetsialistyi-i-obzorzarplat (Accessed 7 March 2016).7. HeadHunder (2016), The labor market in Lviv region, available at: https://hh.ua/article/14134 (Accessed 3 March 2016).8. Proforientator.info (2016), Marketing, available at: http://proforientator.info/?page_id=1579 (Accessed 16 March 2016).9. Rabota.ua (2016), Dynamics of marketing specialists vacancies, available at: http://blog.rabota.ua/marketingsamyie-vostrebovannyie-spetsialistyi-i-obzor-zarplat (Accessed 18 March 2016).10. Rabota.ua (2016), Business Sales: whom employers want to pay the most, available at: http://blog.rabota.ua/rabota-v-prodazhah-komu-rabotodateli-gotovyi-platitbolshe-vsego (Accessed 7 March 2016).11. Apostrof (2016), Where to Look for Business in Ukraine: Labor market prospects in 2016, available at: http://apostrophe.com.ua/article/society/2016-02-14/gdeiskat-rabotu-v-ukraine-perspektivyi-ryinka-truda-v-2016-godu/3329 (Accessed 16 March 2016).12. HeadHunder (2016), The barometer of labor market in 2014, available at: https://hh.ua/article/15894 (Accessed 7 March 2016).13. Marketyum (2016), Marketing specialists around the world, available at: http://marketium.ru/zarabotok-marketologa (Accessed 3 March 2016).14. VC. ru (2016), How earn marketers and PR-specialists in Russia and abroad, available at: https://vc.ru/p/marketing-salaries (Accessed 18 March 2016).15. HeadHunder (2016), How earn experts in marketing, available at: https://hh.ua/article/1246 (Accessed 16 March 2016).16. Information system Contest (2016), Introduction, available at: http://vstup.info (Accessed 18 March 2016).

Market Information Access Capability of Rural Farmer in Nga Son, Thanh Hoa, Viet Nam

This research analyzes the impact of farmers’ capability to access market information on the improvement of farmer household livelihood. For this purpose, a fieldwork was conducted in Nga Son district with specific objectives: (i) To describe the market information system in Nga Son, Thanh Hoa; (ii) To identify the farmers’ capability of access, understanding and use of market information; (iii) To explore the influence of access and use of market information on the change of farmer household economic condition; and (iv) To determine farmer’s advantages and disadvantages of access to market information in Nga Son. The results show that: (i) The system provides MI service has initially formed in Nga Son district, in which the extension station and staff play as key roles; (ii) The farmers’ capability of access in the district still remain at average level and farmers are sluggish in access to market information service; (iii) The farmers’ capability of access to market information closely related to their annual incomes; (iv) Factors that impact on the farmers’ capability of access to market information including educational background, economic condition of household and effective supports and interventions of local government, of which the economic conditions of households is the main factor. Based on empirical results mentioned, our proposed suggestions are: (i) Strengthen the market information system; (ii) Improve the capability to access market information of farmers through training courses; and (iii) Increase public awareness and investment within refurbishing the transportation systems, restructuring the marketing system, promoting the development of cooperatives, enhancing the application of high technologies such as Internet, mobile phone, radio and newspaper to provide reliable market information services.

Use of Marketing Information by Cassava Farmers in Oshimili-North Local Government Area, Delta State, Nigeria

Agricultural marketing is a series of inter-connected activities which depends to a large extent on the exchange of information. This study examined the cassava farmers’ socio-economic characteristics, their awareness of and utilization of market information as well as their sources of marketing information in Oshimili-North Local Government Area, Delta State. Primary data used in this study were obtained from 100 cassava farmers randomly selected from five markets using a well structured interview schedule. Frequency counts, percentages and means were used to describe the data collected while correlation analysis was used to test the hypothesis of the study. Study findings indicated that farming constituted the major occupation of the respondents, more women than men were involved in the cultivation and marketing of cassava products and majority of them were poorly educated as 64% of them were not educated beyond secondary level. Radio was the most used source of information on marketing activities while the least used source was trade fair. Cassava farmers were aware of marketing information on processed cassava products and mainly sold their harvests in forms of garri, flour, semolina, fufu, starch and chips. Although, cassava farmers’ income was significantly enhanced by their use of marketing information, they were however seriously constrained by inadequate supply of planting materials, seasonal price fluctuations, exorbitant market changes as well as high cost of packaging materials. Use of market information facilitates spatial distribution of products from farm gate to consumers in the cities and between markets. There is therefore compelling need to establish market information services to assist both farmers and traders to adjust to liberalized marketing in the short term and to assist farmers to better plan their production in the long term.

Market-Based Regulation and the Informational Content of Prices

Various laws and policy proposals call for regulators to make use of the information reflected in market prices. We focus on a leading example of such a proposal, namely that bank supervision should make use of the market prices of traded bank securities. We study the theoretical underpinnings of this proposal in light of a key problem: if the regulator uses market prices, prices adjust to reflect this use and potentially become less revealing. We show that the feasibility of this proposal depends critically on the information gap between the market and the regulator. Thus, there is a strong complementarity between market information and the regulator's information, which suggests that regulators should not abandon other sources of information when learning from market prices. We demonstrate that the type of security being traded matters for the observed equilibrium outcome and discuss other policy measures that can increase the ability of regulators to make use of market information.

Understanding Who is Responsible for Pollution: What Only the Market can Tell Us—Comment on “An Ecological Economic Critique of the Use of Market Information in Life Cycle Assessment Research”

Understanding Who is Responsible for Pollution: What Only the Market can Tell Us—Comment on “An Ecological Economic Critique of the Use of Market Information in Life Cycle Assessment Research”