BEHAVIOUR OF FOREST ENTERPRISES ON TIMBER MARKET UNDER CONDITIONS OF INFORMATION ASYMMETRY

Based on the theory of information asymmetry, the paper identifies strategies of behaviour of forest enterprises on the timber market which are formulated in connection to the actual market situation. Timber market is not information-effective because there is an information asymmetry in the form of moral hazard and adverse selection. The market subject which disposes of better information may use this advantage to make extra profit or to overtake the market subject with worse information. Reduction of the negative impacts of information asymmetry is one of the basic assumptions of effective functioning of market relations. In order to achieve this on the timber market, it is possible to use models of compensation system, signalling and revealing principle. Moreover, effective strategies of the behaviour of forest enterprises and timber purchasers can be analysed using the game theory.