Correia da silva, Joao (2015) Two-period economies with price-contingent deliveries. Economic Theory, 59 (3). pp. 509-525.

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Identification Number : 10.1007/s00199-014-0839-6

Abstract

An economy with ex ante markets for future delivery contingent on ex post spot market prices is considered. Since spot prices are publicly observed ex post, this framework bypasses the enforcement problems that may arise as a result of differential information about states of nature. Generically, the equilibria of an economy with price-contingent deliveries coincide with the equilibria of the corresponding economy with state-contingent deliveries. However, replacing state-contingent deliveries with price-contingent deliveries may generate additional equilibria and/or remove some equilibria. The perfect foresight hypothesis is crucial to avoid a severe problem of nonexistence of equilibrium.

Item Type: Article
Language: English
Date: 2015
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 05 Nov 2015 15:11
Last Modified: 13 Mar 2021 12:28
OAI Identifier: oai:tse-fr.eu:29821
URI: https://publications.ut-capitole.fr/id/eprint/18594
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