The Determinants of Coal Contract Duration for the Powder River Basin
We 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.
If 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.
Volume (Year): 157 (2001)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.mohr.de/jite |
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(200112)157:4_608:tdoccd_2.0.tx_2-0. See general information about how to correct material in RePEc.
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.