Price relations on futures markets for storable commodities
type: Item
instance of: scholarly article
title: Price relations on futures markets for storable commodities
zbMATH Open document ID: 0576.90010
DOI: 10.1016/0022-247X(83)90172-5
author: Michael J. P. Magill
author: Jess Benhabib
published in: Journal of Mathematical Analysis and Applications
publication date: 1983-01-01T00:00:00Z
review text: The paper presents a simple theoretical model of the spot and futures markets for a storable commodity. The problem of existence of a spot market equilibrium is reduced as usual in competitive systems to an optimization problem supported by a system of prices. The underlying assumption is that the demand on certain related markets of the representative firm is subject to continual random fluctuations which prevent the market from reaching a (partial) equilibrium state. This fact induces certain kind of costs which are measured by means of a stock-out cost function.
Mathematics Subject Classification ID: 91B24
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 65K10
Mathematics Subject Classification ID: 91B50
Mathematics Subject Classification ID: 90C90
zbMATH DE Number: 3922316
zbMATH Keywords: variational techniques
zbMATH Keywords: spot and futures markets
zbMATH Keywords: storable commodity
zbMATH Keywords: existence of a spot market equilibrium
zbMATH Keywords: random fluctuations
zbMATH Keywords: stock-out cost function
MaRDI profile type: Publication
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description: scientific article; zbMATH DE number 3922316