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Lee, Georgallis & Struben, 2022 - Matrix of Different Kinds of Markets - Radical products

5 important questions on Lee, Georgallis & Struben, 2022 - Matrix of Different Kinds of Markets - Radical products

What does the next market, Q3, Radical Products, look like?

Low demand uncertainty, there is definitely demand, but the supplies and solutions are uncertain. Maybe they exist but are expensive or the technology isn't there yet.

When does Q3 arise? Think of plastic

These types of markets arise when there is a demonstrated need to remedy on environmental problem via market mechanisms.

What are the challenges for Q3?

Unproven tech, high risk
Need for coordination of inter-dependent decisions
Collective action problems may arise due to different incentives.

What is meant by the fact that in this market interdependent decisions must be coordinated?

It means that decisions (e.g. battery types for electric cars) must be coordinated across the industry, governments and standard organisations which requires some collective action.

Why do you have collective action problems here?

With the interdependent decisions (where different industries should work together and take collective action), some individual companies may favour some technology over the other based on their expertise, resources or capabilities. So the problem stems from having different incentives.

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Week 4 Video Lectures BSS MCM

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