European Integration: Strategic Market Research and Industry Structures
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JACEK CUKROWSKI
Articles from this author:
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Inflation and Adjustment of Relative Prices in Georgia
The paper focuses on the dynamics of relative prices of goods and services in Georgia in the period of relative macroeconomic stabilization i.e., in years 1996–2001. Structure of Georgian consumer price index (CPI) is described in details and an analysis of the dynamics of relative prices is presented. It is shown that inflation is positively … Continued
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From Transition to Monetary Integration: Revenues from Seignorage in Poland
The analysis presented in the paper focuses on seigniorage revenues in the period of transition to market economy and fiscal consequences of European monetary integration. A comprehensive framework for a measurement of seigniorage revenues in transition period is presented and estimates of its sources and uses in the period 1990–2000 are computed and analyzed. The … Continued
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Determinants of Foreign Direct Investment in Georgia
Foreign direct investment (FDI) brings host countries capital, productive facilities, and technology transfers, as well as new jobs and management expertise. Thus it is important to understand why in many countries FDI inflow is lower than it would be expected. The goal of this study is to investigate factors determining flow of FDI in Georgia. … Continued
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Inflation and Adjustment of Relative Prices in Georgia
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Manfred M. Fischer
The paper is concerned with the impact of market research prior to integration, on the structures of noncompetitive industries in integrated economy. The analysis focuses on separated, single commodity, monopolistic markets with stochastic demand. Monopolistic firms are considered in dynamic multiperiod model, where intertemporal links are determined by expenditures on market research in a present period and benefits from this activity (i.e., smaller variance of the prediction error) in the future. Assuming that each firm maximizes its total discounted expected utility from profit in indefinite time, we show that the optimal market research strategy is stationary and depends on market size. Consequently, in the period following integration firms operating prior to integration in small markets (such as Slovenia, Czech Republic, Hungary or Estonia) are expected to have much less information about the integrated market than their competitors operating before integration on European market. This informational asymmetry may affect the structure of the industry in integrated economy. In the extreme case, the firm operating before integration in the small market can be ruled out from the integrated market.