The Determinants of Coal Contract Duration for the Powder River Basin
AbstractWe examine coal contract duration using data on utility coal buyers and supplying mines in the Powder River Basin. Duration determinants are (1) measures of buyers' and sellers' transaction-specific investments and (2) trading and market experience. The results largely support transaction-cost theory. As theory predicts, duration is positively influenced by the mines' physically specific investments in reserves and the utilities' investments in coal-specific generating units. Contrary to theory, the mines' dedicated capacities negatively influence duration. Duration decreases with increasing prior experience between trading pairs and with the experience gained by utilities as mines demonstrated their ability to consistently deliver quality fuel.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 157 (2001)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- López-Bayón, Susana & González-Díaz, Manuel, 2010. "Indefinite contract duration: Evidence from electronics subcontracting," International Review of Law and Economics, Elsevier, vol. 30(2), pages 145-159, June.
- Kosnik, Lea & Lange, Ian, 2009.
"Contract Renegotiation and Rent Re-Redistribution: Who Gets Raked Over the Coals?,"
Stirling Economics Discussion Papers
2009-25, University of Stirling, Division of Economics.
- Kosnik, Lea & Lange, Ian, 2011. "Contract renegotiation and rent re-distribution: Who gets raked over the coals?," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 155-165, September.
- Matthew Ellman, 2006. "The optimal length of contracts with application to outsourcing," Economics Working Papers 965, Department of Economics and Business, Universitat Pompeu Fabra.
- Maria Kozhevnikova & Ian Lange, 2009. "Determinants of Contract Duration: Further Evidence from Coal-Fired Power Plants," Review of Industrial Organization, Springer, vol. 34(3), pages 217-229, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.