The long side of the market and the short end of the stick: Bargaining power and price formation in buyers’, sellers’, and balanced markets

Published

Journal Article

The determinants of bargaining power and price formation in a dynamic exchange market where new traders enter randomly over time are studied. When agents on the long side of the market possess the option to wait for the arrival of future partners, the terms of trade in the spot market must honor the value of this option. The equilibrium terms of trade are expressed in intuitive closed-form equations that highlight the distinct influences of short-run spot-market conditions and long-run market demographics. © 1995 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Full Text

Duke Authors

Cited Authors

  • Taylor, CR

Published Date

  • January 1, 1995

Published In

Volume / Issue

  • 110 / 3

Start / End Page

  • 837 - 855

Electronic International Standard Serial Number (EISSN)

  • 1531-4650

International Standard Serial Number (ISSN)

  • 0033-5533

Digital Object Identifier (DOI)

  • 10.2307/2946701

Citation Source

  • Scopus