IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Experimental Study of Forward and Spot Markets: Contract Failure as a Contributing Factor of Vertical Integration

  • Esipov Victor
  • Menkhaus Dale J.


  • Yakunina Alla


Registered author(s):

    A probability of a partner not fulfilling his forward contract obligations (contract failure) increases in a transition economy. This project investigates the process of price and quantity discovery in a laboratory setting when there is (1) an endogenous choice between forward and spot market institutions and vertical integration; and (2) a certain probability of forward contract failure. The results suggest that in some cases a contract failure creates incentives to integration. To develop a system, which efficiently allocates resources, the state policy should be oriented toward strengthening the legal system and developing of the spot market, which may act like an insurance mechanism for the failed forward trades

    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.

    File URL:
    Download Restriction: no

    Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 99-02e.

    in new window

    Length: 86 pages
    Date of creation: 13 May 1999
    Date of revision:
    Handle: RePEc:eer:wpalle:99-02e
    Contact details of provider: Postal:
    EERC Research Network, Russia and CIS, 1, Mazepy Str., suite 202, Kyiv, 01010 Ukraine

    Phone: +38(044)492-8012
    Fax: +1(202)478-1968
    Web page:

    Order Information: Postal: EERC Research Network, Russia and CIS, 1, Mazepy Str., suite 202, Kyiv, 01010 Ukraine
    Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eer:wpalle:99-02e. 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: (Anton Pashchenko)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.