Interbank currency prices are nonnegotiable within an interaction, unlike bazaar markets
Evidence
The minimalism characteristic of trading conversations may count as one of their identifying details (Garfinkel et al. 1981); its economic basis lies in the global competition and the price volatility that make speed mandatory to the trader. … A third rule of interest with regard to economic theory and auction, bazaar, and other markets where the price is negotiable (Smith 1990; Geertz 1978; DeLaPradelle 1995; Clark and Pinch 1995; see also Callon 1998, pp. 264–66), is that the price is nonnegotiable within a trading interaction; all a counterpart can do is forgo the trade and hope for a better price to be offered either at a later time or somewhere else. — Karin Knorr Cetina & Urs Bruegger, Global Microstructures, 114
Categorization
- XREF: Connects directly to the law merchant / private-judges institutional literature the reader has been building around Milgrom’s Champagne Fairs work, and to Geertz and Clark-Pinch on negotiation in bazaar-type markets. — connects to: Market conversations do not convey information but perform trades. — Karin Knorr Cetina & Urs Bruegger, Global Microstructures: The Virtual…, 29
Related
- Screen-based trading conversations forbid price negotiation entirely. (similarity 0.82)
- Conversation itself is the instrument of global interbank exchange. (similarity 0.79)
Broader Connections
- Market conversations do not convey information but perform trades.
#complicates(0.72) — Karin Knorr Cetina & Urs Bruegger, Global Microstructures, 29