Monopoly behaviour with speculative storage

Speculative behaviour and complex asset price dynamics

This paper analyses the dynamics of a model of a share market consisting of two groups of traders: fundamentalists, who form rational expectations on the fundamental value of the asset, and chartists, who base their trading decisions on an analysis of past price trends. The model is reduced to a two-dimensional map whose dynamic behaviour is analysed in detail, particularly with respect to glob...

The Stochastic Dynamics of Speculative Behaviour

On the basis of the ideas of Goldman and Beja(1980) and Chiarella(1992), we construct a stochastic model of speculative dynamics that has a stochastic equilibrium. In this model, different expectations for the price of fundamentalists and chartists are introduced into the model. The system is analyzed using concepts and techniques from the theory of Random dynamical systems. The model exhibits ...

Monopoly with resale

We examine the intricacies associated with the design of revenue-maximizing mechanisms for a monopolist who expects her buyers to resell. We consider two cases: resale to a third party who does not participate in the primary market and interbidder resale, where the winner resells to the losers. To influence the resale outcome, the monopolist must design an allocation rule and a disclosure polic...

Executive Compensation and Short-Termist Behaviour in Speculative Markets

We present a multiperiod agency model of stock-based executive compensation in a speculative stock market, where investors have heterogeneous beliefs and stock prices may deviate from underlying fundamentals and include a speculative option component. This component arises from the option to sell the stock in the future to potentially overoptimistic investors. We show that optimal compensation ...

Monopoly with Resale Supplementary Material