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Is it Possible to Move the Copper Market?

Author

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  • Juan Pablo Montero

    (Instituto de Economía)

  • Matti Liski

Abstract

We study whether and to what a large supplier facing a competitive fringe could effectively move the market of a depletable stock such as copper. We argue that the mere possibility for the large stockholder (i.e., leader) to sign forward contracts significantly reduces its market power. We show, for example, that in a three-period setting the leader has no ability whatsoever to move the market.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Juan Pablo Montero & Matti Liski, 2003. "Is it Possible to Move the Copper Market?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 559-565.
    • Handle: RePEc:ioe:cuadec:v:40:y:2003:i:121:p:559-565
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    References listed on IDEAS

    as
    1. Butz, David A, 1990. "Durable-Good Monopoly and Best-Price Provisions," American Economic Review, American Economic Association, vol. 80(5), pages 1062-1076, December.
    2. Newbery, David M G, 1981. "Oil Prices, Cartels, and the Problem of Dynamic Inconsistency," Economic Journal, Royal Economic Society, vol. 91(363), pages 617-646, September.
    3. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    4. Coase, Ronald H, 1972. "Durability and Monopoly," Journal of Law and Economics, University of Chicago Press, vol. 15(1), pages 143-149, April.
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