The role of observability in futures markets

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Show simple item record Ferreira, José Luis 2009-09-11T13:40:33Z 2009-09-11T13:40:33Z 2006
dc.identifier.bibliographicCitation B.E. Journals in Theoretical Economics Topics. 2006, vol. 6, nº 1, art. 7, p. 1-22
dc.identifier.issn 1935-1704
dc.description.abstract Allaz (1992) and Allaz and Vila (1993) show that in an oligopolistic industry the introduction of a futures market that operates prior to the spot market induces more competitive outcomes. Hughes and Kao (1997) show that this result presumes that firms’ future positions are perfectly observed, and that when firms’ positions are not observed the Cournot outcome arises. We study an alternative formulation of observability, where the behavior of participants in the futures market is explicitly analyzed, and show that this approach leads to different results. Imperfect observability induces more competitive outcomes than Allaz and Vila’s model.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Berkeley Electronic Press
dc.rights ©Berkeley Electronic Press
dc.subject.other Futures markets
dc.subject.other Observability
dc.subject.other arbitrage
dc.subject.other cournot competitions
dc.title The role of observability in futures markets
dc.type article PeerReviewed
dc.description.status Publicado
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
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