While employees will have different preference functions, the employer will over time find a market clearing wage.
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Or, if you prefer, the futility of trying to fix prices at any point other than their market clearing price.
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The same is true of fixing prices above the market clearing price.
However, they point out this problem could be rectified if the markets were re-sequenced, with the gas market clearing before the electric power bidding process.
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Economics has a number of useful concepts to help guide activity in the real world and this one of a market clearing price is one of them.
This is why we have this concept of a market clearing price of course, that being the price at which supply equals demand and the market clears.
Here is the real question to ask if one suspects that speculators are driving the price of oil for current delivery above and beyond the market clearing price: Where is all the extra oil going?
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Why don't promoters simply charge a market-clearing price for the tickets instead of bashing middlemen who do?
When demand exceeds supply in a normal market, the price rises until it reaches a market-clearing level.
If people are unemployed, it means the price of labor is artificially high relative to the market-clearing price.
Hey, the market-clearing price of any security is where supply and demand meet.
And isn't demand for oil lower than it would have been if the price of oil had been at its true market-clearing level?
"If supply responses and the market-clearing price are not considered, wholesalers and retailers will run out of gasoline and consumers will be worse off, " she says.
If labor and other markets are allowed to function without government intervention, there will be a tendency toward market-clearing prices, including relative wage rates and interest rates that reflect time preferences and the productivity of capital.
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If so did such an arrangement effectively bar access to the market for other clearing houses?
In the mid-1980s, when MasterCard entered the market, the clearing system between banks in different cities was (and is) almost non-existent: a cheque could take up to a month to clear, and many sellers would not release goods until it did.
More realistically, market forces will drive clearing and settlement houses to join forces, because it is more cost-efficient when buyer, seller and security are linked.
The pattern was also clear in the new-issue market where single B clearing yields gapped out 13 bps versus those of BB loans, which remain in high demand not just from institutional loan accounts but banks and cross-over investors.
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"You just want to see the market fall and find its clearing price, " said the trader.
Other NYSE sources of revenues include clearing fees, market data, listing fees and technology services.
Geithner noted that derivatives trading firms were meeting to work out comprehensive infrastructure reforms for that market, including a central clearing house, reducing outstanding contracts, and regulatory changes including higher margin and collateral requirements.
He also wants information related to the bank's market-making activities and its clearing and settlement procedures.
Why are many derivative market participants still objecting to exchange clearing of the remaining OTC derivative contracts?
Xalatan eye solution recently lost market exclusivity in major countries, clearing the way for cheaper generic copies.
The joint private-sector forum introduced today will specifically be looking into clearing and settlement systems, market liquidity and the development of new yuan-denominated products.
Clearing a path to the market soon will be the Winbot 7, a compact machine billed by manufacturer Ecovacs Robotics as the first full-service window-washing robot.
The same factors are at work in the new-issue market, where, in late June, clearing yields narrowed and flex activity shifted sharply in favor of issuers.
Along with a better-than-expected macro environment in August, surplus inflows to the loan market lifted secondary prices and pressured new-issue clearing yields lower.
For my purposes today, I want to construe "financial infrastructure" very broadly, to include not only the "hardware" components of that infrastructure--the physical systems on which market participants rely for the quick and accurate execution, clearing, and settlement of transactions--but also the associated "software, " including the statutory, regulatory, and contractual frameworks and the business practices that govern the actions and obligations of market participants on both sides of each transaction.
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