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Journal of Agricultural and Resource Economics >
Volume 24, Number 02, December 1999 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/30793
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| Title: | ENDOGENOUS CHOICE OF INSTITUTION UNDER SUPPLY AND DEMAND RISKS IN LABORATORY FORWARD AND SPOT MARKETS |
| Authors: | Menkhaus, Dale J.
Bastian, Christopher T.
Phillips, Owen R.
O'Neill, Patrick D. |
| Issue Date: | 1999-12 |
| Abstract: | Laboratory methods are used to investigate the impacts of supply and demand risks in a forward market on prices, quantities traded, and earnings when the choice of transacting in a forward or spot market is endogenous. Forward market activity dominates spot trading, with 80-90% of the trades taking place in the forward market regardless of how risk arises. Buyer earnings tend to be higher than earnings for sellers when there is risk. A correspondence exists between risk type and the relative increase in buyer earnings. Buyer earnings increase significantly when demand is random, and also when both supply and demand are random. |
| URI: | http://purl.umn.edu/30793 |
| Institution/Association: | Journal of Agricultural and Resource Economics>Volume 24, Number 02, December 1999 |
| Total Pages: | 19 |
| Language: | English |
| From Page: | 553 |
| To Page: | 571 |
| Collections: | Volume 24, Number 02, December 1999
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