Negotiated transaction

Regardless of the approach chosen, new issues are underwritten by the intermediaries. That is, once an issue is launched the intermediaries own the bonds and are responsible for placing them with investors. The underwriting risk is small with a negotiated transaction, but can be substantial with bought deals. The fee earned by the dealers for underwriting a deal is simply the difference between the price paid to an issuer for the bonds and the price at which they are re-offered (and hopefnlly sold) to investors. The all-in rate to the issuer is the yield (or spread) that reflects the price paid to the issuer. 

Verhaltniszahl, /, proportional number. Verhaltung, /. = Verhalten, verhandeln, v.t. transact try sell.—v.i. treat, negotiate,... 

A carbon tax would offer a broader scope for emission reductions [10]. A system of tradable permits entails significant transaction costs, which include search costs, such as fees paid to brokers or exchange institutions to find trading partners negotiating costs approval costs and insurance costs. Conversely, taxes involve little transaction cost over all stages of their lifetime. 

One must view so-called traditional business—the delivery of semifinished and finished products—as being increasingly supplemented by the sales of large capital equipment and whole plants. Whereas the former has usually been carried out through standard-form contracts of the respective foreign trade corporations, the latter transactions are negotiated in detail. 

The suggestion to use prevailing transaction prices is also less straightforward than it seems for new products. In country U, analysts would need to estimate what the price for the new product would be. Not only is this difficult, but it is virtually certain that the price will depend on the public insurer s reimbursement policy if patients covered by the public insurer are to be major users of the new product. In country T, where prices are negotiated, the advice to use average price obviously presents a complex problem of simultaneous decision making. The public insurer cannot decide whether to reimburse the new product until it knows its price, but that price will be highly dependent on what the reimbursement is. 

Above all, full documentation of due diligence undertaken for a transaction will be the basis for both the creation of the contract and an audit of its performance. As a consequence it builds up a body of knowledge which constitutes an image of the value of the product. This also forms the substance of the negotiation of the terms and conditions and ultimately the final price of the transaction to be agreed and settled by both parties. 

The final traditional area of dispute concerns administrative costs. The phase I national allocation plans (NAPs) involved negotiation over allowances with a total asset value of almost 50 billion per year (assuming an average price of 20/tCO2). Political decisions on how to allocate these assets between sectors and individual installations naturally creates intensive lobby activity by all participants in order to obtain the maximum possible share of the rents.21 The time and energy devoted by companies, governments, and indeed consultancy and research sectors, to this enormous rent allocation process represents huge transactional costs.22... 

By trimming certain elements of the real-estate transaction system, we can envision a cleaner, simpler, and less expensive system, depicted in Exhibit 13.4. Of course, this innovated system is stylized and simplified in reality, the Functional Analysis would be much more detailed, showing all aspects of the real estate transaction, not just the listing, negotiation, and other functions shown. 

Voucher schemes can be administratively onerous compared with traditional supply-side subsidies, and there are significant transaction costs associated with negotiating and monitoring contracts. A detailed discussion of this topic appears in chapter 5. 

The division between labor markets and labor relations, as methodologies and objects of study, is artificial. In its modem form it is the result of the rigid application of static optimization methodolo to one field and a more inductive, narrative-and-case-study approach to the other. In the study that occupies this book the dichotomy appears in the guise of two different approaches to the explanation of occupational risk, one that sees it as the negotiated outcome of conflict and cooperation within the firm, the other that regards it as simply one more commodity to be transacted in the marketplace. Modem efficiency wage theory, however, represents a first step toward the dissolution of this divide, and more flexible and creative uses of game theory can be expected to take us even further down this road. 

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