Sunk Investments Lead to Unpredictable Prices
研究在竞争市场中，交易前需要投资但无法签订远期合约时，即使市场完全竞争且不确定性极小，买卖双方也无法预测交易价格，导致投资和交易效率低下。
We study transactions that require investments before trading in a competitive market, when forward contracts fixing the transaction price are absent. We show that, despite the market being perfectly competitive and subject to arbitrarily little uncertainty, the inability to jointly determine investment levels and prices may make it impossible for buyers and sellers to predict the prices at which they will trade, leading to inefficient levels of investment and trade.