Taking this a bit further, the best way to fight this phenomenon may be to improve buyers' ability to react quickly to the market. I'm sure there's some startup ideas here for specific instances of "market".
The model might apply, but only very slowly. A single tick of the model would be equal to the duration of a contract (i.e., instead of updating prices multiple times per day, as the authors propose, prices would be updated every 1-2 years).
There are two conditions, high number of cycles, and company's reacting faster than customers. As I said there is a high number of cycles because company's can change their price for new contracts every day or hour etc. The second condition that customers reactor slower which does not mean they can't renew at the end of their term just that they don't react as fast to changing prices as companies do.
Personally, I have gone though several cycles of renewing my contract and I must say I don't price shop on the day I sign the new contract. Do you?