Why do some goods end up on secondary markets, derivative markets, etc. and others don’t? Why, for instance, do we have a healthy market for futures on pork bellies and not on chicken legs?
I ask the question in relation to this blog because we have seen a healthy market emerge trading digital ad inventory. I get why it works this way in practice, but I am more interested in the theory here. From an economic point of view, why do we have DSPs, SSPs, Exchanges, etc? Theoretically, why has the complex display ad ecosystem emerged? Is it here to stay like pork belly futures, or is it simply the product of a confused market, limited by technology, but unbounded by optimism in the short term?
To me, it seems too complex to be sustainable. But that’s why I want to understand the theory a little bit better. What do you think?