Advance production in spot markets increases seller costs because inventories must be held. This cost does not exist in production-to-demand (or forward) markets, for which production follows trading, and sales exactly match quantities produced. Data from laboratory-computerized markets that trade through private negotiation are analyzed. For the experimental supply and demand conditions, price convergence patterns show spot prices 10.8% lower and the number of trades 12.4% fewer than forward outcomes. The adverse impact of advance production and private negotiation on seller earnings is emphasized when earnings are compared with those from double auction trading. M arkets in agriculture involve numerous institutional arrangements and allow alternative methods of delivery (Tomek). A trading institution consists of rules and conventions that govern exchange. Auction and private negotiation are two trading institutions studied in this paper. The auction, specificall a double auction, consists of buyers and sellers announcing bid and ask prices that converge to an eventual trade price. Private negotiation is akin to this for one buyer and one seller, rather than the interaction of many buyers and sellers, in the price discovery process. 1 Interestingly, world wide web trading sites have been organized as either auctions or message boards that facilitate private negotiation.
Russian gas export liberalization has been discussed throughout the post-Soviet period. Recently, the number of Gazprom's export monopoly advocates has been diminishing as a result of dramatic changes in both European and Russian gas markets, which are: increasing international trade in liquefied natural gas; the EU movement from longterm contracts to the commodity markets and hub pricing; substantially increased share of the non-Gazprom gas suppliers at the Russian domestic market. Although there is a potential risk of price decrease in the EU gas market in the case of the Gazprom export monopoly abolition, the benefits of the Russian gas export liberalization would be greater than losses. The gas resource base and the cost of pipeline gas production would allow Russia to improve its positions in the world market.
The study suggests formalized algorithm that allows to make an informed choice of instruments for financing M&A transactions. This algorithm includes following several stages: identification of the limiting factor; determination of the anticipated structure of settlements for the M&A transaction; formation of a financial instruments parameters set to use for the instruments' comparison; determination of specific weights of the selected parameters of the M&A financial instruments; identification of "preferable" values of financial instruments' parameters; comparison of the "preferred" financial instruments parameters with their actual or potentially possible parameters; making choice of the instruments for financing the M&A transaction. Approbation of the algorithm is done using the example of JSC "Agrofirma Volga", acting as a buyer company, and JSC "Zorinskoye", acting as a target company.
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