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| Phillips, Owen R.; Menkhaus, Dale J.. |
| The culture of private negotiation leads parties to agreements below a price that anchors beginning bids and offers. Possible anchors are a list price or suggested retail price. The anchor may be endogenous, e.g., the average reported trade price from previous trading activity. An endogenous anchor may cause a downward or upward drift in negotiated prices. Using bilateral bargaining data from laboratory experimental markets, this paper demonstrates how price information reports create drifts in negotiated prices. A downward drift is robust and causes sharp declines in total market surplus. Also, relative earnings are distributed toward buyers and away from sellers. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Demand and Price Analysis. |
| Ano: 2006 |
URL: http://purl.umn.edu/21168 |
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| Menkhaus, Dale J.; Bastian, Christopher T.; Phillips, Owen R.; O'Neill, Patrick D.. |
| Laboratory experimental methods are used to investigate the impacts of supply and/or demand risks on prices, quantities traded, and earnings within forward and spot market institutions. Random demand and/or supply shifts can be as much as 25 percent of the expected equilibrium outcome. Nevertheless, results suggest that the spot or forward trading institution itself has a greater influence on market outcomes than the presence of risk within the trading institutions. Sellers tend to have relatively higher earnings in a spot market than buyers, regardless of the risk. Total surplus, however, generally is greater in a forward market. |
| Tipo: Journal Article |
Palavras-chave: Laboratory markets; Forward market; Spot market; Supply and/or demand risks; Demand and Price Analysis; Marketing. |
| Ano: 2000 |
URL: http://purl.umn.edu/15388 |
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| Menkhaus, Dale J.; Yakunina, Alla V.; Phillips, Owen R.. |
| This research investigates the impact of reporting different kinds of trade information to buyers and sellers in laboratory markets, for which exchange is made through bilateral bargaining. Results suggest that public information may improve the bargaining position of buyers relative to sellers when there is spot delivery. In some cases sellers earn less than in a no information baseline. There is evidence of a curse of knowledge for sellers in our information experiments when quantity traded for the entire market is known. The mandatory price reporting of all trades does not improve the income of sellers. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: International Relations/Trade. |
| Ano: 2001 |
URL: http://purl.umn.edu/36127 |
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| Menkhaus, Dale J.; Phillips, Owen R.; Bastian, Christopher T.; Gittings, Lance B.. |
| This laboratory study investigates the extent to which matching and inventory loss risks contribute to market power in private negotiation trading. Asymmetry in the number of buyers and sellers increases matching risk when exchange is bilateral. The risk of inventory loss can occur from advance production and is common in markets for perishable products. In a buyer concentrated market with bilateral trading, prices are about 23% below the predicted competitive level and close to the monopsony price. These lower prices are the result of tacit coordination enjoyed by buyers resulting from matching and inventory loss risks faced by sellers. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Marketing. |
| Ano: 2004 |
URL: http://purl.umn.edu/20212 |
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| Menkhaus, Dale J.; Bastian, Christopher T.; Phillips, Owen R.; O'Neill, Patrick D.. |
| Laboratory methods are used to investigate the impacts of supply and demand risks in a forward market on prices, quantities traded, and earnings when the choice of transacting in a forward or spot market is endogenous. Forward market activity dominates spot trading, with 80-90% of the trades taking place in the forward market regardless of how risk arises. Buyer earnings tend to be higher than earnings for sellers when there is risk. A correspondence exists between risk type and the relative increase in buyer earnings. Buyer earnings increase significantly when demand is random, and also when both supply and demand are random. |
| Tipo: Journal Article |
Palavras-chave: Demand and Price Analysis. |
| Ano: 1999 |
URL: http://purl.umn.edu/30793 |
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