This case introduces students to the different market-making mechanisms. It distinguishes the ways in which buyers and sellers interact (posted price, negotiation, horizontal interaction), provides daily examples of each kind, and compares their advantages and disadvantages.
Buyer/Seller Exchange Relationship
by: Robert J. Dolan
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After reading and discussing the material, students should:
- Describe different market-making mechanisms,
- Distinguish the ways in which buyers and sellers interact,
- Provides examples of each kind of interactions,
- Compare advantages and disadvantages