کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
884746 | 912413 | 2006 | 17 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Do forward markets enhance competition?: Experimental evidence Do forward markets enhance competition?: Experimental evidence](/preview/png/884746.png)
Hedging risks is an important rationale for forward trading. However, Allaz and Vila [Allaz, B., Vila, J.-L., 1993. Cournot competition, forwards markets and efficiency. Journal of Economic Theory 59, 1–16] show that oligopolists may also have a strategic motive to sell forward. Moreover, in their model forward markets increase competitiveness between firms, raising consumer surplus and efficiency. In this study, we examine this theoretical result in a controlled laboratory environment and investigate how the trading institution and the number of firms affect competition. Our findings support the main comparative-static predictions but also suggest that, when compared to the increase in competitive pressure due to entry, the competition-enhancing effect of a forward market is weaker than predicted.
Journal: Journal of Economic Behavior & Organization - Volume 61, Issue 3, November 2006, Pages 415–431