Bilateral Contracting
p. p. 24
Bilateral Contracting The behavior of buyers relying on bilateral contracts is likely to differ from consumers purchasing power from Western Power Exchange (WEPEX). Intuition suggests that buyers in bilateral contracts are probably more se...
AI summary The text discusses how bilateral contracts influence buyer behavior, making them more price-sensitive and reducing price risk. It also notes that increased bilateral contracts may increase demand elasticity, though the market share of such contracts is uncertain.