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The General Formula for an Escalator Clause Adjustment Is: New

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The general formula for an escalator clause adjustment is: new = original × (original year index / current year index).


Definitions:

Viral Marketing

A promotional strategy that encourages individuals to pass on marketing messages to others, creating potential for exponential growth in the message's exposure and influence.

Reverse Auctions

Auctions in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.

Forward Auctions

An auction in which several buyers bid competitively for a seller's good or service, with the price increasing incrementally until the highest bid is reached.

Lower Prices

A strategy where a seller reduces the cost of their goods or services to attract more customers or undercut competitors.

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