We startd out this paper with a list of Facts that financial theorizing should attempt to explain. We discussed the Facts in enough detail so that the reader can appreciate the caution one needs to display while interpreting evidence form financial databases.

This paper analyzes a market in which sellers have power market and set price taking into account the ability of buyers to time their purchases. I demonstrate that expected fluctuations in demand are inherently fluctuations in the elasticity of demand, leading to smaller markups on the up-side...