Lee, Georgallis & Struben, 2022 - Matrix of Different Kinds of Markets - Market transformation

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

What does the market of the final quadrant, market transformation, look like?

Here there is high demand uncertainty and supply uncertainty.

When do these types of markets exist?

When there is an externality to be addressed but there is limited understanding of the nature and scope of the externality.

What are examples of the Q4?

Eating insects, entomophagy, it is very promising in terms of the environmental impact but it conflicts with consumer preferences. People are hesitant to adopt which leads to high demand uncertainty and the supply uncertainty is high because there are many questions about food safety, regulations etc.
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The challenges here are quite the same as in Q2 and 3 but there is a difference, what and why?

Collective action problems are multiplied because you need to coordinate production and distribution but without certainty of demand and you need to educate consumers and build awareness without certainty of supply.

What is the supply side uncertainty?

Can we produce this at scale and the right way to serve a market that does not exist yet?

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