Business Strategy for Efficient Markets & Economic Rents
Every organisation that is in the market for profit, aims to having equal access to all information pertaining to economic actors, so that it can formulate and execute winning strategy for itself. It thus means, although preferring to be alone but having no option, organisations fight for market information. Thus, giving rise to ‘EFFICIENT MARKETS’. In essence market is built of many organisations but is characterised & known by behaviours of those actors which are dominant in the market. Consequently, prices are known to every one for a product, as they are in a chain from raw material to finished goods; only changing their role of input to output. It does mean that one has to price its product in such a way that it is neither overpriced nor under-priced. Overpriced products will not get sufficient buyers and under-priced products will be deluged with buyers and therefore may not be able to supply to all. Automatically efficient markets eliminate odds and works for b...