Guidelines for Report 2 due on Nov 19
You have your opportunity to build your own company and you are pitching your idea to a potential investor
Answer the following questions in first few paragraphs:
What is the problem you see in the current market
What is currently being done to mitigate this problem and why it’s not working
Why will your product solve this problem
What kind of good is product and its substitutes/complements? (common, private, club, public)
What kind of market is your product going to compete? Answer the following (yes, no and why/how):
Are agents rational?
How many buyers?
How many sellers?
Is information accessible?
Are products homogeneous?
Are there any mobility/transaction cost?
Are there any barriers to entry?
What is the HHI? (include graphs or tables detailing the market share of each firm)
Are there any shadow markets?
What was your criteria to determine the market scope (i.e., who were the relevant competitors)?
Based on these questions describe whether you have a perfectly competitive market, monopoly, oligopoly or monopolistic competition?
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