Relaxing competition through speculation: Committing to a negative supply slope
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چکیده
منابع مشابه
Relaxing competition through speculation: Committing to a negative supply slope
The trade in commodity derivatives is widespread and trading volumes often surpass that of the underlying commodities. Commodity derivatives markets have seen a 60fold increase in the value of trade between 1998 and 2008. In 2008 the outstanding value of commodity derivatives equaled $13 trillion. This is twice the worldwide output of commodities, and about 21% of world GDP. Ideally derivatives...
متن کاملRelaxing competition through speculation: Committing to a negative supply slop
5 We demonstrate how commodity producers can take strategic specula6 tive positions in derivatives markets to soften competition in the spot mar7 ket. In our game, suppliers first choose a portfolio of call options and then 8 compete in supply functions. In equilibrium firms sell forward contracts 9 and buy call options to commit to downward sloping supply functions. Al10 though this strategy i...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2015
ISSN: 0022-0531
DOI: 10.1016/j.jet.2015.06.004