Commodity loans are presented as an interpretation of spreads between spot and futures prices in commodity markets. This interpretation suggests an alternative to convenience yield as an explanation for the existence of large positive differences between spot and futures prices that are inconsistent with the usual arbitrage arguments. A model is presented in which an owner of a stock of a commo...

This paper looks at the response of growers and merchants, first to vine disease and high prices, and then to the problems of overproduction and product adulteration. France produced a large range of wines, but by the early twentieth century most commodity chains were failing to provide accurate information for consumers to discriminate between differences in quality. The paper argues that the ...

This paper discusses the incentive to bundle when consumer valuations are nonadditive and/or when products are supplied by separate sellers. Whether integrated or separate, firms have an incentive to introduce a bundle discount when demand for the bundle is elastic relative to demand for stand-alone products. A simple formula is derived for when an integrated firm supplying substitute products ...

This paper reviews the use and structure of commodity-linked credit instruments. It is argued that in the absence of contingent markets food firms face increasing financial risk reduced investment, and limited access to debt markets. One strategy is to issue commodity-linked credit whose payment structure is linked to the price of an underlying commodity. In some cases, a commodity-linked bond ...

This paper presents an existence theorem in a general equilibrium model of a production economy with commodity differentiation and indivisibilities. The model is motivated by the existence of markets with indivisible commodities, such as the markets for automobiles and computers. As is standard in the literature, the space of commodity characteristics is described by a compact metric space and ...

Unlike derivatives of financial contracts, commodity options exhibit distinct particularities owing to physical aspects of the underlying. An adaptation of no-arbitrage pricing to this kind of derivative turns out to be a stress test, challenging the martingale-based models with diverse technical and technological constraints, with storability and short selling restrictions, and sometimes with ...

Indicators to assess sustainable land development often focus on either economic or ecologic aspects of landscape use. The concept of multifunctional land use helps merging those two focuses by emphasising on the rule that economic action is per se accompanied by ecological utility: commodity outputs (CO, e.g., yields) are paid for on the market, but non-commodity outputs (NCO, e.g., landscape ...

Recent Grid projects, such as the Globus Project, provide a set of useful services such as authentication and remote access to resources, and information services to discover and query such remote resources. Unfortunately, these services may not be compatible with the commodity technologies used for application development by the software engineers and scientists. Instead, users may prefer acce...