The major challenge for the tomato farmers is getting a fair price at the market price given that there are many actors involved in the tomato value chain. Given this situation, this project's goal was to improve communication pathways in dissemination of agricultural market information in tomato value chains in Iringa and Dodoma Regions in Tanzania. The specific objectives were to: identify an...

Models Traders' values and information typically consist of both private and commonvalue elements. In such environments, full allocative efficiency is impossible when the private rate of information substitution differs from the social rate (Jehiel and Moldovanu, 2001). We link this impossibility result to a failure of the efficient market hypothesis, which states that prices adequately reflect...

Most firms face some form of competition in product markets. The degree of competition a firm faces feeds back into its cash flows and affects the values of the securities it issues. We demonstrate that, through its effects on stock prices, product market competition affects the prices of options on equity naturally and leads to an inverse relationship between equity returns and volatility, gen...

We develop an analytical framework for the valuation of options contracts for physical delivery that enable risk-sharing between the trading partners. The spot market price risk, the buyer’s demand risk and the seller’s marginal cost risk, which are key to many industrial settings such as the chemical industry, are explicitly incorporated. Analytical expressions for the buyer’s optimal reservat...

Appropriate function of active management in common investment funds function depend on factors such as diversification, identification papers unrealistic pricing, market timing, and so on. Market timing are include changing the portfolio investment funds and market indices such as short-term bonds and make an asset depends on whether the market is expected in the whole of the assets to make be...

These notes consider Abreu and Brunnermeier’s (2003) paper on the failure of rational arbitrage in asset markets. Recall that the “no-trade” theorem states that speculative bubbles cannot exist in a world with only rational traders even if there is asymmetric information, so long as these traders share a common prior. Believers in the efficient market hypothesis argue that even if there are als...

This paper presents an approach to recovering the "true" underlying market value returns from observable appraisal-based index returns, without pre-supposing or constraining the market value returns to be unpredictable or uncorrelated across time. A structural/behavioral model is developed relating observed index returns to the underlying market returns. The procedure presented here explicitly ...

I n this paper, we study a single-product periodic-review inventory system that faces random and price-dependent demand. The firm can purchase the product either from option contracts or from the spot market. Different option contracts are offered by a set of suppliers with a two-part fee structure: a unit reservation cost and a unit exercising cost. The spot market price is random and its real...

The development of the internet has led to a renaissance of traditional auction mechanisms in electronic form. Electronic auctions are used in manifold ways, e.g. in procurement processes as well as in the C2C area. The design of electronic auctions is important since the microstructural rules affect the auctions’ outcome. Market Engineering is a structured approach to develop and study electro...