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