The Long Side of the Market and the Short End of the Stick: Bargaining Power and Price Formation in Buyers', Sellers', and Balanced Markets | Zendy

Curtis R. Taylor | Zendy

Open Access

The Long Side of the Market and the Short End of the Stick: Bargaining Power and Price Formation in Buyers', Sellers', and Balanced Markets

Author(s) -

Curtis R. Taylor

Publication year - 1995

Publication title -

the quarterly journal of economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 34.573

H-Index - 259

eISSN - 1531-4650

pISSN - 0033-5533

DOI - 10.2307/2946701

Subject(s) - bargaining power , spot contract , demographics , market power , value (mathematics) , economics , spot market , honor , microeconomics , power (physics) , market price , exchange economy , business , monetary economics , financial economics , futures contract , monopoly , electricity , demography , operating system , machine learning , sociology , computer science , electrical engineering , engineering , physics , quantum mechanics

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.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research