Softening competition through forward trading

• 成果类型: Article
• 署名作者: Mahenc, P; Salanié, F
• 署名单位: INRAE; Universite de Toulouse; Universite Perpignan Via Domitia
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2003.07.009
• 发表日期: 2004
• 页码: 282-293
• 关键词: forward market; Bertrand competition

摘要

In the history of alleged manipulations on forward markets, it has been observed that high prices resulted from a cartel's long positions. The present paper addresses this issue in a simple model of price setting duopolists. We show that forward trading results in producers buying forward their own production, so that equilibrium prices are increased compared to the case without forward trading. This result contrasts with the social desirability of forward markets emphasized by the academic literature. (C) 2003 Elsevier Inc. All rights reserved.