Long term contracts and market stability - The case of iron ore - Rogers, C.D.; Robertson, K.; Robertson, K. (Elsevier)
The paper gives the background to the international iron ore trade and discusses the organization of markets and causes of instability. The role of the long term contract is then examined and possible relationships between prices and quantity instability and the pattern of use of long term contracts is considered. It is concluded that although such contracts tend to promote market stability this may conflict with the need for market readjustment.
http://linkinghub.elsevier.com/retrieve/pii/0301-4207(78)90075-2
Keywords: ZP; Q