IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00511812.html
   My bibliography  Save this paper

Oligopoly, uncertainty and strategic forward transactions

Author

Listed:
  • Blaise Allaz

    (HEC Paris - Recherche - Hors Laboratoire - GROUPE HEC)

Abstract

We build a simple two-period model of an oligopoly producing a homogeneous good that can also be traded on a forward market It is shown that in such a sequential model where forward decisions are taken prior to spot decisions, forward transactions can be an effective tool in the hands of noncompetitive producers Whether the oligopolists end up long or short on the forward market depends on the interaction between strategy and risk hedging as well as on the type of conjectural variation that is assumed

Suggested Citation

  • Blaise Allaz, 1992. "Oligopoly, uncertainty and strategic forward transactions," Post-Print hal-00511812, HAL.
  • Handle: RePEc:hal:journl:hal-00511812
    DOI: 10.1016/0167-7187(92)90020-Y
    Note: View the original document on HAL open archive server: https://hal-hec.archives-ouvertes.fr/hal-00511812
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Léautier, Thomas-Olivier & Rochet, Jean-Charles, 2014. "On the strategic value of risk management," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 153-169.
    2. Matthias Pelster, 2015. "Marketable and non-hedgeable risk in a duopoly framework with hedging," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(4), pages 697-716, October.
    3. repec:eee:eneeco:v:65:y:2017:i:c:p:64-74 is not listed on IDEAS
    4. repec:eee:ejores:v:261:y:2017:i:2:p:755-771 is not listed on IDEAS
    5. Baldursson , Fridrik M. & von der Fehr, Nils-Henrik, 2007. "Vertical Integration and Long-Term Contracts in Risky Markets," Memorandum 01/2007, Oslo University, Department of Economics.
    6. Sebastien Mitraille & Henry Thille, 2017. "Strategic advance sales, demand uncertainty and overcommitment," Working Papers 1708, University of Guelph, Department of Economics and Finance.
    7. Yao, Jian & Oren, Shmuel S. & Adler, Ilan, 2007. "Two-settlement electricity markets with price caps and Cournot generation firms," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1279-1296, September.
    8. repec:eee:ejores:v:261:y:2017:i:2:p:540-548 is not listed on IDEAS
    9. repec:eee:juipol:v:50:y:2018:i:c:p:194-206 is not listed on IDEAS
    10. René Aïd & Gilles Chemla & Arnaud Porchet & Nizar Touzi, 2011. "Hedging and Vertical Integration in Electricity Markets," Management Science, INFORMS, vol. 57(8), pages 1438-1452, August.
    11. Vadim Borokhov, 2015. "Antimonopoly regulation method based on perfect price discrimination," Papers 1507.04478, arXiv.org.
    12. van Eijkel, Remco & Kuper, Gerard H. & Moraga-González, José L., 2016. "Do firms sell forward for strategic reasons? An application to the wholesale market for natural gas," International Journal of Industrial Organization, Elsevier, vol. 49(C), pages 1-35.
    13. Bustos-Salvagno, Javier, 2015. "Bidding behavior in the Chilean electricity market," Energy Economics, Elsevier, vol. 51(C), pages 288-299.
    14. Obermüller, Frank, 2017. "Explaining Electricity Forward Premiums - Evidence for the Weather Uncertainty Effect," EWI Working Papers 2017-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    15. repec:eee:jfinin:v:30:y:2017:i:c:p:107-121 is not listed on IDEAS
    16. Haim Mendelson & Tunay I. Tunca, 2007. "Strategic Spot Trading in Supply Chains," Management Science, INFORMS, vol. 53(5), pages 742-759, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00511812. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.