Lake Licrinus , near Pozzuoli in the coast of Campania, was the focal point of a successful oyster farming private business supplying the market in Rome for around one century, from the collapse of the Republic to the consolidation of the Imperial period. Ancient writers and archeological findings provide abundant information about oyster farming, in general, and about the business in Lake Licrinus , in particular. Modern knowledge in economics and oyster biology allows organizing the available evidence into the framework of a theoretical model for explaining the causes of business success and the evolution of the business as a celebrated key actor of the Roman oyster market.
As today, oysters were a superior good, with a positive income elastic demand, and with low or non-significant price elasticity. Transactions took place in a free market framework, with prices changing as a consequence of the shifts in demand and supply, with no significant intervention of the authorities until the early IV Century. Innovation and differentiation appear as the keys for success in the market positioning of the Lake Licrinus oysters. Proximity to the main destination market added another competitive advantage for the producers in Campania.
The b usiness life cycle is described along the different stages, from the start-up to decline. External and internal events and factors affected the revenues and profits. Demand size, economic growth, increasing competition, political instability and environmental conditions are among the events and factors driving the Lake Licrinus industry. The consequences of these factors on demand, prices and profitability are presented along the different stages of the business life cycle.