search query: @author Hubbard, G. / total: 9
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| Author: | Hubbard, G. Weiner, R. |
| Title: | Long-term contracting and multiple-price systems |
| Journal: | Journal of Business
1992 : APR, VOL. 65:2, p. 177-198 |
| Index terms: | BUSINESS ECONOMICS CONTRACTS PRICES |
| Language: | eng |
| Abstract: | This article examines product markets in which long-term contracts and spot transactions coexist. Such markets are characterized by "multiple-price systems", wherein adjustment to supply and demand shocks occurs through spot prices, while contract prices are fixed or adjust slowly. The authors derive the existence of contracts, as well as the equilibrium fraction of spot trade, in the framework of an optimizing model and analyze the effects of shocks on market equilibrium when some buyers and sellers are "locked in" contractually. |
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