wouldn't long term contracts be really inefficient?
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Yes if that reduces overall risk profile of business. The nature of contracted service or product is key too. Example co innovation.
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No, how could either “dominate” w such unstable parameters?
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Depends on Phase: (Installation v Deployment) Consider: Development of next-version Iphone. In Install Phase: Involves high innov + cap intensive. Long term supply contracts (FoxConn) dominate. In Deployment Phase: more Spot as supplychain decenters (Gongkai-like)
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More of a question of competitiveness right? Very competitive market = liquid/short (high innovation = more value for new vendors/suppliers too)
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You’d expect an oligarchy. Chip manufacturing is closest example I can think of.
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Isn’t the ans to that dependent on the dominant internal state of the majority of the decision making empowered actors in that sector?
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